Combined profit of Saudi petchem firms expected to drop 24% in Q4-15

Analysts expect the combined net profit of Saudi petrochemical companies to drop by 24 percent year-on-year (YoY) and 28 percent quarter-on-quarter (QoQ) in Q4-2015, according to data compiled by Argaam. 

Saudi Industrial Investment Group (SIIG) will likely see the highest profit growth of 45 percent YoY in Q4. National Petrochemical Co. (Petrochem), Saudi Kayan, and Sahara Petrochemical Co. followed with projected profit growth of 23 percent, four percent and two percent, respectively.

Meanwhile, National Industrialization Co. (Tasnee) is projected to see the biggest profit fall of 275 percent, swinging to a loss of SAR 171 million.

Saudi International Petrochemical Co. (Sipchem) will also see a profit fall of 74 percent. It is followed by Yanbu National Petrochemical Co. (Yansab) with a 59 percent decline; and Saudi Arabia Fertilizers Co. (SAFCO) with 29 percent.

Giant petrochemical producer Saudi Basic Industries Corp. (SABIC) is forecast to see its net profit fall by only two percent YoY.

Methanol Chemicals Co. (Chemanol) and Rabigh Refining and Petrochemical Co. (Petro Rabigh) are likely to widen their losses by 314 percent and 240 percent to SAR 39 million and SAR 672 million, respectively.

The average includes forecast figures issued by Saudi Fransi Capital, NCBC, Riyad Capital, Osool & Bekheet, and other investment firms that cover local petchem producers.