SABIC Announces Third Quarter Results 2021

SABIC today reported its earnings for the third quarter of 2021. The company’s revenue for the third quarter reached SAR 43.70 billion ($ 11.65 billion), representing an increase of 3% compared to the previous quarter.

Income from operations for the quarter totaled SAR 7.70 billion ($ 2.05 billion) a 23% decrease quarter-over-quarter. Net income during the third quarter amounted to SAR 5.59 billion ([$ 1.49 billion), a decrease of 27% compared to the second quarter of 2021.

Yousef Abdullah Al-Benyan, Vice Chairman and Chief Executive Officer of SABIC, said: “SABIC’s healthy financial performance during the third quarter of 2021 marked a continuation of our recovery from the impact of COVID-19, albeit at a lower level than our exceptionally strong performance during the second quarter. We did, however, see a moderation in margins in the third quarter due mainly to rising feedstock costs, which offset the increase in average sales prices.”

Mr. Al-Benyan continued, “SABIC announced the start of commissioning activities and preparations for the initial start-up of the petrochemicals joint venture project in the U.S. gulf coast (Gulf Coast Growth Ventures). This project supports SABIC’s global growth strategy, and its aim to diversify its feedstock sources and strengthen its petrochemical manufacturing presence in North America.”

Regarding SABIC’s value realization with Saudi Aramco, since the close of the deal, SABIC has focused on moving forward and maintaining its growth momentum – with a view to maximizing value creation from synergies. During the first nine months of 2021, SABIC achieved $ 350 million. 

In the third quarter, sales and supply chain activities extended their focus area to support marketing in SADARA, S-oil and Fujian Refining & Petrochemical Company (FREP). From October 1st, SABIC also began marketing Saudi Aramco’s portion of petrochemical products in Petro Rabigh. This will allow SABIC to further strengthen its products and services offering, and enhance its competitive presence in the global chemicals industry.

In the third quarter of 2021, SABIC also demonstrated its continued commitment to sustainability by unveiling its global strategy towards carbon neutrality at the inaugural Saudi Green Initiative (SGI) Forum. This states that SABIC is committed to the Paris Agreement goals, and will continually pursue efforts and explore solutions to meet carbon neutrality from operations under its control by 2050, taking into account the different regional and national ambitions, commitments and initiatives. Focusing on direct and indirect emissions generated by its own production (Scope 1 & Scope 2), SABIC aims to reduce greenhouse gas emissions by 2030 worldwide by 20% compared to 2018. In addition, SABIC aims to collaborate with its partners in initiatives that aspire to reduce indirect Scope 3 emissions along the value chain.

Other sustainability highlights this quarter included SABIC becoming the first in industry to launch circular polycarbonate produced from post-consumer mixed plastic. The company also demonstrated its ongoing commitment to industry innovation and collaboration by working closely with Microsoft to make their first consumer electronic product with recycled ocean plastic.