SABIC’s focus on cost cutting, R&D behind profit: CEO

Saudi Basic Industries Corp’s (SABIC) focus on operations, cost management and continued investment in research and development were the reasons behind its first and second quarter net profits, CEO Yousef al-Benyan told al-Arabiya television.

The petrochemicals giant’s presence in markets like Europe, China and the United States allowed it to access cheap feedstock in those markets, he added.

Sales in China, the most strategic market for the company, were as robust as ever, he said.

SABIC, which is 70 percent owned by the Saudi government, has a long experience in navigating the cyclical nature of the commodities market and takes into consideration the volatility of the oil market and the global economic situation, he added.

The Gulf’s largest listed company made a net profit of SAR 6.17 billion in the second quarter, down 4.5 percent from a year earlier, but beating the average net profit of SAR 4.96 billion estimated by analysts.