SABIC has recorded a profit in Q1-10, from a loss in Q1-09. An improvement has been seen in the performance of SABIC’s innovative plastics business, that had contributed to its first loss in seven years in Q1-2009. Profits were also helped by improved prices and new production from local and Chinese units.
SABIC reported a net income of SR5.43 bln (US$1.45 bln) vs a loss of SR970 mln in the same period in 2009. At SR 34 bln, sales were 72% higher than the SR19.8 bln in revenue reported in Q1-09.
Production that has come onstream at Yansab, Asharq and Tainjin will support results from Q2-10. SABIC’s Innovative Plastic business has seen a “huge improvement” on improving demand from automotive and electronic goods segment during the quarter. Optimism about a recovery in the US market makes global economic recovery seem “sustainable”. Sabic’s quarterly results were “associated with the improvement in the average prices, higher sales volume and absence of impairment charges of 1.2 billion riyals, which was recorded in the first quarter of 2009,” according to Global Investment House KSCC.
SABIC aims to triple petrochemical production to 130 mln tons by 2020, and plans to add 12 mln tons of production by 2012. The company aims to initiate projects and complete existing ones, including the plant being built by Saudi Kayan Petrochemical Co.