Saudi Basic Industries Corp (SABIC), world’s biggest petrochemicals maker by market value, is studying investment opportunities in the U.S. as the economic slowdown in Europe and China hurt its second-quarter sales. Q2 profit climbed 14%, missing analysts estimates. Sales declined to 45 billion riyals from 46.5 billion riyals.
“It is very important that Sabic is not left out from investments in the U.S. as it is a huge market in terms of the presence of shale gas and also proximity to other markets,” Chief Executive Officer Mohamed Al-Mady told reporters in Riyadh yesterday. “We are studying opportunities in the U.S. to expand Sabic’s presence in the chemical and polymer businesses.”
SABIC will be joining companies like Dow Chemical Co. and Exxon Mobil Corp. in seeking to take advantage of the U.S. shale boom that has helped drive down natural-gas prices. Cheap gas is doubly advantageous to chemical makers because it’s used as a raw material and to power factories. U.S. producers would be more competitive in commodity chemical exports to Asia if wet shale costs remained below US$6.5 per million British thermal units and Brent stayed above US$100 a barrel.
09-Oct-13 
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