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Ala AlShaikh, CEO of Basic Chemical Industries
Basic Chemical Industries Co. (BCI) expects improvement in sales volumes and profit margins in the first quarter of 2024 compared to the same period in 2023, CEO Alaa AlShaikh told Argaam in an exclusive.
The increase in the fourth-quarter profits was backed by 7% growth year-on-year (YoY) in sales of BCI, a 15% increase YoY in industrial adhesives sales, and an 18% rise YoY in polyurethane sales. In addition, the company sold the old chlorine factory in Dammam, compared to the cost of restructuring the headquarters in the same period of 2022.
He pointed out that product prices improved annually compared to the first quarter of 2023, but the new challenge is the rise in transportation costs and diesel this year, as the company works on geographical repositioning to mitigate the impact of this increase.
BCI has focused on enhancing sales operations and supply chains in the Kingdom to serve customers through the Jubail plant, which produces basic chemicals including chlorine, caustic soda, hydrochloric acid, and hypochlorite, and also through the Yanbu plant, which produces sulfuric acid.
He explained that better prices had a significant impact on sales.
He added that demand for industrial adhesives grew strongly last year driven by price improvement and increased sales volumes inside and outside the Kingdom.
Further, the polyurethane market continues its robust growth driven by the growth of the construction and projects sector in the Kingdom.
Regarding the fourth-quarter sales, AlShaikh explained that the Jubail plant contributed 45% of the total sales of the wholly owned units, and 18% of the total group sales, including mixed companies.
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