Poor performance in Q2 drives SABIC to boost petrochem output

20-Jul-09

After posting a 76% drop in Q2 profit, Saudi Basic Industries Corp (SABIC) plans to raise its petrochemicals output by about 12 mln tons by the start of 2012. Lower petrochemicals and metals prices led to a sharp drop in Q2 net profit compared to the same period in 2008, although it reversed a net loss posted in Q1-09. The company has not booked goodwill depreciation in Q2, and it is uncertain if it will book goodwill depreciation in Q3. The planned output increase will mainly come from a 3.2 million tonne joint venture with China's Sinopec and within Saudi Arabia from Yanbu National Petrochemical Co and the expanded Asharq petrochemical plant.