SABIC expects sales to rise on new plant completions: Al-Fageeh

Abdulrahman Al-Fageeh, CEO, Saudi Basic Industries Corp.

Saudi Basic Industries Corp.'s (SABIC) CEO Abdulrahman Al-Fageeh expects sales to grow with new plant completions in China’s Fujian complex and Jubail Methyl tert-butyl ether (MTBE) facility.

Speaking to Argaam at the Q3 earnings conference, he noted Fujian's capacity exceeds 5 million metric tons annually, with Jubail contributing over 1 million metric tons upon completion.

SABIC aims to boost global production to meet rising demand, he added.

Al-Fageeh highlighted that quarter-to-quarter sales depend on routine maintenance, inventory levels, and global market strategies. He added that recent sales of Saudi Iron & Steel Co. (Hadeed) and Aluminium Bahrain (Alba) align with SABIC’s strategy to focus on petrochemicals, positively impacting performance. This divestment is expected to benefit SABIC’s short- and long-term operations.

On divestitures, Al-Fageeh confirmed SABIC’s exit from metals and steel segments, with plans to focus on petrochemicals.

SABIC Executive Vice President of Finance Salah Al-Hareky noted that the company is recycling capital by selling stakes, such as in Alba, to reinvest in growth-aligned areas.

Al-Hareky added that SABIC is reviewing its investments in Europe, the US, and Saudi Arabia to evaluate both strategic and non-strategic assets, expecting positive outcomes. These actions aim to drive sustainable shareholder value and expand growth opportunities.

Al-Fageeh said Q3 showed varied demand for petrochemicals, with steady demand across industries and slight growth in automotive, personal care, and healthcare. He expected stable demand across most sectors in Q4 2024, with gains in agriculture and consumer goods.

SABIC reported a Q3 net profit of SAR 1 billion, reversing last year’s SAR 2.9 billion loss, driven by higher average selling prices and lower losses from discontinued operations.

Al-Fageeh said SABIC maintained stable margins and effectively managed global supply challenges, demonstrating resilience.

The company continues to diversify, adding 100 to 150 new products annually.

Operating in 100 markets, the company targets new markets for expansion, underscoring its commitment to growth and innovation, the CEO said.