SABIC’S PROFIT RISES ON HIGHER VOL­UMES

SAUDI PETRO­CHEM­I­CALS GI­ANT’S QUAR­TERLY PROFIT MEETS ES­TI­MATES; ON TRACK FOR FUR­THER GROWTH

CEO Middle East - - NEWS -

SAUDI BA­SIC IN­DUS­TRIES COR­PO­RA­TION POSTED A

5.4 per­cent in­crease in third quar­ter profit, meet­ing an­a­lysts’ es­ti­mates. Net in­come rose to SAR6.1bn ($1.63bn) from SAR5.8bn a year ago, the Mid­dle East’s big­gest petro­chem­i­cals pro­ducer said in a state­ment.

The av­er­age es­ti­mate of an­a­lysts was for a profit of SAR6.08bn.

Sabic, as the com­pany is known, said higher av­er­age sell­ing prices and an in­crease in vol­umes helped boost profit. Sales climbed 13 per­cent to SAR43.71bn.

State-owned Saudi Aramco is in talks to buy shares in Sabic from the coun­try’s sovereign wealth fund as the world’s big­gest crude oil ex­porter ex­pands ahead of a planned ini­tial pub­lic of­fer­ing (IPO). Aramco has no plans to ac­quire any pub­licly held shares in Sabic.

The stock has gained 27 per­cent this year com­pared with an 8.4 per­cent gain for the bench­mark Tadawul All Share In­dex.

The news comes amid a flurry of ac­tiv­ity at Sabic, Saudi’s big­gest listed com­pany, over the past year.

Saudi Aramco, the world’s big­gest oil com­pany, re­mains in talks with the Pub­lic In­vest­ment Fund (PIF) – Saudi’s sovereign wealth fund – to take a 70 per­cent stake in Sabic.

In Novem­ber last year, Aramco signed a mem­o­ran­dum of un­der­stand­ing with Sabic to de­velop a fa­cil­ity that would con­vert crude oil to chem­i­cals.

Newspapers in English

Newspapers from UAE

© PressReader. All rights reserved.