Saudi producers announce Q2 financial results – see a boost in profits

Saudi Arabian producers are announcing their financial results for the second quarter of this year, as per ChemOrbis. Most companies posted higher net profits mainly on the back of increased sales volumes and higher prices for their products. Saudi Arabia’s Rabigh Refining and Petrochemical (Petro Rabigh) posted a net profit of SR172 mln (US$46 mln) in the April-June period, reversing their SR237 mln Riyals (US$63 mln) loss recorded in the same period of 2013. The company cited higher prices and improved sales volumes for petrochemical products as the main reasons behind their better financial results. Saudi Basic Industries Corporation (SABIC) reported a 7% rise in their net profits for the April-June period, supported by stronger sales. The company’s net profit rose to SR 6.46 bln (US$1.72 bln) from SR 6.04 bln when compared to the same period of last year. Sales were up from SR 45 bln to SR48 bln (US$12.8 bln) in the same period. Saudi Sipchem saw a 40.6% annual increase in their net profit for the second quarter of 2014, with their net income reaching SR 244.6 mln Riyals (US$65.2 million). The company pointed to higher prices and sales volumes as the main reasons behind their stronger financial results. Saudi Arabia’s Sahara Petrochemical also boosted their net profit by 46% year on year to SR 185 million Riyals (US$49 mln) in the second quarter. When compared to the first quarter, the company’s net profit surged by 85.2%. The company attributed their stronger second quarter financial performance to better results in their associated companies along with lower financing costs. Saudi Arabia’s National Industrialization Company’s (Tasnee) net profit rose by 34.7% year on year to 408.3 million Riyals ($108.9 million) in the second quarter of 2014. The company’s profit is also up by 27.3% when compared to the first quarter of this year. Tasnee’s higher profits were attributed to their increased sales volumes and margins for petrochemical products, sales of which make up for over 80% of their revenue. Saudi Arabia’s Yanbu National Petrochemical’s (Yansab) net profit climbed by 10.3% when compared to the first quarter of this year. However, the company’s net income decreased by 8.6% year on year to SR 613 million (US$163.5 million) in the April-June period. The company pointed to higher naphtha costs and higher taxes as the main reasons behind their year on year weaker results. According to ChemOrbis, meanwhile, Saudi Kayan, an affiliate of SABIC, reduced their net loss to SR 133.1 million (US$35.5 million) in the second quarter of 2014 from SR 238.2 million (US$64 million) recorded in the same period of 2013. The company posted a net profit of SR 9.9 million (US$2.6 million) in the first quarter of this year.