Saudi producers report weaker profits for Q2, 2015
Saudi Basic Industries Corporation (SABIC) announced a lower net profit for the second quarter of this year. The company’s net profit declined by 4.5% year on year to SAR6.17 billion ($1.64 billion) in the April-June period. Weaker prices for petrochemicals were cited as the main reason behind SABIC’s lower net profit. In addition, the company’s sales also declined by 13% on an annual basis in the second quarter despite climbing compared to the January-March period.
Sipchem (International Petrochemical Co) also saw an annual drop of 55% in their second quarter net profits which declined to SAR110.2 million ($29.4 million). The company’s weaker net profits were attributed to shutdowns at some of their plants as well as a notable drop in product sales prices.
Tasnee (National Industrialization Co) announced a net loss of SAR107.7 million ($28.7 million) in the second quarter of 2015 compared with a net profit of SAR408.3 million ($108.87 million) in the same period of 2014. Tasnee’s second quarter financial results were also hit by lower product prices amidst higher general and administrative costs.
Sahara Petrochemical’s net profit slumped by almost 94% year on year to SAR11.4 million ($3.04 million) in the second quarter of 2015. Weaker sales and lower product prices were cited as the main reasons behind the company’s tumbling profits. Sahara’s financial results were also said to have been impacted by scheduled maintenance shutdowns at plants of its subsidiaries Al Waha Petrochemical Co. and Maaden Petrochemical Co. (SAMAPCO) in the same quarter. Al Waha conducted a month-long shutdown at their 450,000 tons/year PP plant in Al-Jubail on April 1.
PetroRabigh, on the other hand, almost tripled their net profit on an annual basis in the second quarter of this year. The company’s net profit jumped from SAR172 million ($45.86 million) in the second quarter of 2014 to SAR504.9 million ($134.64 million) in the same period of this year. The company’s surging net profit was attributed to improved margins for certain products.
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