Sabic, a Saudi diversified manufacturing company, reported net profits of SR18.3 billion ($4.87 billion) for the first three-quarters of the year, as against SR14.73 billion in the same period in 2017 – an increase of 24.2 per cent.
Gross profits reached SR44.95 billion as against SR37.44 billion in the same period last year – an increase of 20.058 per cent.
Announcing the results at a press conference in Riyadh, Yousef Al-Benyan, Sabic vice chairman and CEO, attributed the company's strong performance this quarter to higher levels of reliability in operations and cost efficiency.
"Our business transformation program, initiated in 2015, continues to yield results as we drive toward realization of our 2025 strategy,” he said.
Sabic is optimistic about the state of the global and Saudi economies, with the outlook for growth in each being strong.
Al-Benyan acclaimed the valuable contributions made by the employees in the company's new phase of growth – especially their efforts to increase the company’s rate of reliability.
"Our dedicated employees are our strongest asset,” he said. “Thanks to their focused efforts, we have improved reliability to the point that we are able to absorb the higher feedstock and product costs we have been experiencing this year.”
Al-Benyan pointed to Sabic’s moving from fourth to third on Forbes’ annual ranking of the world’s largest chemical companies. Also, Moody’s has given Sabic an “A” rating, due to its “strong global position” in petrochemicals and fertilizers and access to competitively priced raw materials.
"We are humbled by these distinctions from Forbes and Moody’s see them as a major recognition of the progress we are making toward becoming the world’s preferred provider of chemicals by 2025,” Al-Benyan said. He also said Sabic would be establishing a new company to promote the development of small-to-medium-sized enterprises and local content creation in Saudi Arabia – on which more details will be forthcoming.
Operational profits for the first three quarters reached SR29.73 billion as against SR22.42 billion for the corresponding period the previous year, an increase of 32.604 per cent.
Sales for the first three quarters reached SR128.86 billion as compared to SR109.44 billion for the same period last year, an increase of 17.744 per cent.
Sales for the current quarter reached SR43.71 billion as compared to SR38.68 billion for the same quarter last year – an increase of 13.004 per cent – and SR43.28 billion in the previous quarter – an increase of 0.993 per cent. – TradeArabia News Service
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