SABIC’S PROFIT RISES ON HIGHER VOLUMES
SAUDI PETROCHEMICALS GIANT’S QUARTERLY PROFIT MEETS ESTIMATES; ON TRACK FOR FURTHER GROWTH
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.