Saudi petchem firms’ profit seen 12% lower in Q3

The aggregate net profit of Saudi Arabian petrochemical producers is expected to drop an average of 11.6 percent year-on-year (YoY) to SAR 5.92 billion in Q3 2017, according to estimates of equity research firms compiled by Argaam.

On a sequential basis, the average net profit is set to come in 8.4 percent higher

Forecasts were negative for five firms. Giant petrochemical producer Saudi Basic Industries Corp (SABIC) is expected to see a profit drop of 22 percent YoY but a 10 percent rise QoQ to SAR 4.08 billion.

National Petrochemical Co. (Petrochem) is likely to see its earnings lower by 9.7 percent YoY.

Meanwhile, Saudi International Petrochemical Co. (Sipchem) will likely to swing to a net profit of SAR 82.9 million in Q3, compared to a net loss of SAR 59 million in the same period of 2016.

Rabigh Refining and Petrochemical Co. (Petro Rabigh) is projected to narrow net losses by 91 percent YoY.

Net profit of Saudi Industrial Investment Group is likely to jump by 29 percent YoY.

Meanwhile, Advanced Petrochemical, which announced its results last week, saw its Q3 net income of SAR 208 million top average expectations by 6 percent. 

NCB Capital (NCBC) provided estimates for ten firms, while Albilad Capital covered three only.