MOSCOW (MRC) -- Saudi Basic Industries Corp. (Sabic), the world’s biggest petrochemical maker by sales, reported a 29% drop in fourth-quarter profit as lower oil prices reduced returns from its own products, reported Hydrocarbonprocessing.
Net income dropped to 4.36 billion riyals (USD1.16 billion) from 6.16 billion riyals a year earlier, the Riyadh-based company said in a statement today. Sales slipped 10% to 43.4 billion riyals.
Brent crude dropped 48% last year as rising production from North America and the Organization of Petroleum Exporting Countries swelled supply. SABIC will push ahead with plans to build investments even with low oil prices, and is in the "final stages" of talks to expand in the US, CEO Mohammed Al Mady said in an interview.
"Fourth-quarter results are not a surprise for us, we have foreseen the effects of the drop in oil prices on our business," Al Mady said at a press conference in Riyadh. Petrochemicals demand is "good."
As MRC wrote before, in November 2014, KBR was awarded a front-end engineering design (FEED) contract by Saudi Basic Industries Corp. (SABIC) for the debottlenecking and expansion of its Petrokemya butadiene extraction plant in Al Jubail, Saudi Arabia.
Besides, Sabic is modifying its Wilton cracker in the UK to enable it to use ethane feedstock imported from the US. The company is aiming to complete the project by 2016.
Saudi Basic Industries Corporation (Sabic) ranks among the world’s top petrochemical companies. The company is among the world’s market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.