SABIC CEO says petrochemical prices improved in Q1 2024

Abdulrahman Al-Fageeh, CEO of SABIC

The first quarter of 2024 witnessed global and regional improvement in prices of major petrochemical products, driven mainly by improved demand and logistics disruptions, said CEO Abdulrahman Al-Fageeh.

The market has yet to grow into the recent run of capacity investments and this overcapacity continues to place significant pressure on the industry, Al-Fageeh said in the company’s Q1 2024 financial statements.

The gap between excess supply and moderated demand growth is set to remain in place for 2024, he added.

“Industry collaboration with key peers proves to be decisive in driving the sustainability of the global petrochemical industry,” said the CEO, noting that SABIC is committed to continued leadership in innovation as a driving force to its growth and sustainable value creation.

Looking ahead, SABIC is determined to explore, develop and execute growth options in an effective, affordable and sustainable way, both globally and locally. “

Innovation and sustainability are fundamental components of our strategy and will remain our primary focus,” Al-Fageeh said.

SABIC reported a net profit of SAR 250 million in Q1 2024, a 62.1% drop from SAR 660 million a year earlier. On a sequential basis, the company turned to SAR 250 million net profit versus a net loss of SAR 1.73 billion a year earlier.