Sabic shows tremendous resilience; swings to $66m Q1 profit
OIL AND GAS NEWS
Sabic, a global leader in diversified chemicals headquartered in Riyadh, has announced a total net profit of SAR246 million ($66 million) for the first quarter of 2024, when compared to a SR1.73 billion ($461 million) loss in Q4 2023.
Announcing the results for the three-month period ended March 31, 2024, Sabic said the solid performance reflected its high resilience in adapting to market conditions and the global economy.
These results were achieved due to an increase in average selling prices, improved performance of joint ventures and associate companies, and also a decrease in selling, distribution, general and administrative expenses, thanks to Sabic's continuous efforts to achieve optimum cost efficiency.
Commenting on the results, CEO Abdulrahman Al Fageeh said: "Global economic uncertainty remained high during the first quarter of 2024, caused by geopolitical and logistical issues. Adding to these challenges were high global inflation levels and strict lending policies."
"However, Sabic was able to achieve profits from its continuous operations amounting to SAR633 million, compared to a loss of SAR1.48 billion, which reflects high resilience in adapting to market conditions and the global economy," he added.
Al Fageeh pointed out that the environment, health, safety, and security were fundamental pillars in the company's business strategy, which it fully adhered to.
"Sabic strives to go beyond mere compliance, working to strengthen these aspects by applying global best practices," he noted.
On Sabic's achievements this year, Al Fageeh said: "Our innovative solutions won five Edison Awards 2024 for the fourth consecutive year. This recognition makes us feel proud and encourages us to excel in everything we do to be an innovation leader, adding more value to people's lives."
In terms of growth and expansion of the company's business and production, engineering and construction work had begun for the Sabic Fujian complex in China, which would add a qualitative range of products to Sabic’s portfolio of chemicals and polymers and enhance the company's presence in the Chinese market, he stated.
According to him, Sabic also inaugurated the world’s first large-scale electrically heated steam olefins cracking furnace in Netherlands, which will pave the way for the petrochemical giant to fulfill its commitment to reach carbon neutrality by 2050.
The new furnace has the potential to reduce carbon dioxide emissions compared to traditional cracking furnaces, and reflects Sabic’s close collaborations with its industry counterparts to serve global sustainability goals,. he added.-TradeArabia News Service
