Sabic sees positive growth in H2

riyadh — Saudi Basic Industries Corp (Sabic), the world’s fourthbiggest petrochemicals company, said on Sunday it expects positive growth in the second half of this year, backed by an increase in production and enhanced global economic outlook.

The comments came after Sabic reported an 81 per cent leap in second-quarter net profit, citing higher selling prices and a jump in sales volumes. The first half of 2018 was “very positive” and Sabic expects the second half of the year to be “equally positive,” CEO Yousef Al Benyan told a news conference.

Sabic has been a focus of investor attention after Reuters reported earlier this month that Saudi national oil giant Aramco aimed to buy a stake in Sabic, possibly taking the entire 70 per cent holding owned by Saudi Arabia’s sovereign wealth fund, Public Investment Fund (PIF). Aramco subsequently confirmed the report.

Al Benyan said on Sunday that talks on the potential acquisition of a stake in his company are taking place solely between Aramco and the PIF. “Hard to expect anything in this regard — Aramco-PIF talks are between an owner and a future investor,” Al Benyan told a news conference. “I can assure you we have trust in our regulators.”

Sabic posted a net profit of SR6.70 billion ($1.79 billion) in the three months to June 30, up from SR3.71 billion in the yearearlier period, beating average analyst forecasts of a SR5.8 billion net profit. —