SABIC's Q3 figures backed by cost-cutting strategy, new expansions, CEO says

Saudi Basic Industries Corporation (SABIC), the world’s fourth-biggest petrochemicals company, has attributed Q3 2018 positive results to the company's restructuring strategy, which focuses on cutting costs and expanding into new markets, stated CEO Yousef Abdullah Al-Benyan at a press conference announcing the company’s Q3 results.

Al-Benyan also cited SABIC's improved pricing strategy despite higher feedstock prices.

Feedstock prices increased by around 25 percent year-on-year (YoY) during the first nine months of 2018. They also rose by 13 percent quarter-on-quarter (QoQ) in Q3 2018.

The company's output increased by more than 3 million tons YoY for the first nine months of the year.

SABIC's wholly-owned subsidiary, Saudi Iron and Steel Company (Hadeed), reported more than SAR 140 million in profit in the nine-month period, despite incurring restructuring costs. Also, SABIC's affiliate, Arabian Industrial Fibers Company (Ibn Rushd ) posted positive results for the same period.

"We are committed to sustained profitability, while utilizing the top-notch technology in our plants and accessing new markets to enhance basic industries," Al-Benyan said.

The outlook for business in Asia and China remain positive despite some challenges due to high energy prices, he stated, adding, "We are looking for future investment opportunities in Africa, which is a promising market to maintain sales growth."

On Saudi Aramco’s talks to buy a controlling stake in the company from its biggest shareholder Public Investment Fund, Al-Benyan said he had nothing to say at the moment about a deal being discussed between a main shareholder and a future investor.

Earlier, SABIC reported a 5.4 percent rise in third-quarter net profit on Sunday, citing higher average selling prices and increase in sale volumes.