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Prices of some products of Saudi Basic Industries Corp (SABIC) have declined steeply over the last two months of 2018, its chief executive Yousef Al-Benyan said on Sunday.
“Challenges remain in 2019 amidst a global trade war. Oil prices were down over the last four years, but we managed to maintain strong profitability,” Al-Benyan told Argaam during a press conference after SABIC posted a 12.4 percent profit drop in Q4 2018 compared to the year earlier.
“Operations of both Saudi Kayan Petrochemical Co. and Yanbu National Petrochemical Co. (Yansab) – both affiliated to SABIC -- were negatively impacted by lower product prices and higher cost of gas, on the decline in oil prices in Q4 2018,” he added.
However, lower cost of feedstock will likely have a positive impact in Q1 2019, he said.
SABIC posted positive performance indicators in 2018, and is looking forward to report better quarterly results, Al-Benyan stated. “We are part of the global economic system; we are always affected by challenges but are able to adapt with these challenges in the best way,” he indicated.
SABIC is pursuing an expansionary strategy, seeking to introduce new innovative products, in order to boost its global presence competitively, Al-Benyan continued. “China remained SABIC’s main market and the company will seek to boost its growth there, as well as strengthening its presence in Africa,” he said.
Commenting on the memorandum of understanding (MoU) inked with Plastic Energy Ltd. for supply of recycled feedstock, Al-Benyan said that the project, the first-of-its-kind, will utilize innovative techniques for the chemical recycling of plastic waste into feedstock for steam crackers.
“The project echoes SABIC’s sustainability strategy and will likely yield robust commercial proceeds for the plants using such techniques,” he ensured.
SABIC will be joining Saudi Arabia’s national industrial development and logistics program, which will be revealed tomorrow, via a new initiative aiming at boosting the local content and small-and-medium enterprises (SMEs) in the Kingdom.
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