SABIC reports its earnings for the second quarter of 2019
The company’s revenue for the second quarter reached SAR 35.87 billion, representing a decrease of 4% compared to previous quarter and a 17% decrease year-on-year. Net income during the second quarter amounted to SAR 2.12 billion, a decrease of 38% compared to the first quarter of the year.
“The slowdown in global GDP growth coincides with a decline in petrochemical prices due to a significant increase in new supply capacity resulting in lower product prices and margins in key product lines,” said Yousef Al-Benyan, SABIC Vice Chairman and Chief Executive Officer.
“Though lower petrochemical prices have negatively impacted SABIC’s second quarter results, our operational performance remains robust. SABIC remains optimistic on industry fundamentals over the long term and we continue to invest for growth. We recently received all the regulatory approvals to increase our stake in Ar-Razi, the world’s largest methanol complex, to 75 percent and renewed our partnerships with Japan Saudi Arabia Methanol Company (JSMC) for a further 20 years. Also, we obtained all approvals to establish a petrochemical joint venture project with Exxon Mobil in the U.S. Gulf Coast”
In the reporting period, SABIC also signed a Memorandum of Understanding (MoU) to scope a new solar PV-based power plant in Yanbu Industrial city that could have a potential capacity between 200 to 400 Mega Watt (peak). This project would be the Kingdom’s first large scale renewable energy project built for and by the private sector.
The initiate aligns with SABIC’s wider sustainability efforts and in June the company launched its Sustainability Roadmap which is allied to the United Nations Sustainable Development Goals (SDGs). This plan outlines SABIC’s targets relating to resource efficiency, climate change, the circular economy, food security, sustainable infrastructure, and preservation of the environment.
Source / More : SABIC
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