SABIC ranks fifth on list of top 100 chemical firms: ICIS

Saudi Basic Industries Corp. (SABIC), the Middle East’s biggest petrochemical company, has retained the fifth spot on ICIS’ list of the world’s top 100 chemical companies, which ranked sales performance in 2014.

The petrochemicals producer reported a 0.5 percent fall in sales for the year and a 7.6 percent drop in net profit. SABIC attributed the weaker performance to lower average sales prices. The initial impact of declining oil prices was felt in Q4-2014 when the company’s net profit declined 30 percent year-on-year.

National Industrialization Co. (Tasnee), one of the world's largest producers of titanium dioxide, earned the 83rd position.

Meanwhile, the drop in naphtha and other oil-based feedstock prices shifted the competitive position in the region again for olefins producers. Naphtha cracking became more competitive and some producers began to enjoy stronger cash margins.

‘’The competitive advantage of players processing ethane in the Middle East and in the US was diminished as was the advantage from processors of other natural gas liquids (NGLs),” according to the report.

An Iran-based privatized company claimed the 44th position, joining SABIC in the top 50.

Germany’s BASF SE, the world’s largest chemical producer, once again earned the top spot on the list.

The top 50 companies were mostly European. ExxonMobil jumped several spots to claim the third position, while Dow Chemical slipped to sixth place.

The last year marked a challenging time for the industry, especially in the second half as oil and petrochemicals prices dropped on weaker demand in the US, Europe and China. The Top 100 companies posted a 5.9 percent decline in combined sales growth for 2014, the steepest fall since the collapse in 2009. Consolidated global sales dropped to a four-year low of $1.34 trillion.

The ICIS’ Petrochemical Index (IPEX), which reflects price movements, dropped 3.2 percent last year, and 20.8 percent between the third and fourth quarters, signaling an overall drop in global product prices.