SABIC Reports 2018 Net Profit of SAR 21.54 Billion
Strong overall result confirms industry leadership despite decline in fourth quarter
Fourth Quarter and 2018 Highlights:
- Annual Revenues of SAR 169.09 Billion, a 12.9 % Increase Year-Over-Year
- Net Profit Reaches SAR 21.54 Billion, a 16.87 % Increase Year-Over-Year
- Earnings per share of SAR 7.18 , a 17% Increase Year-Over-Year
- Fourth Quarter Net Profit of SAR 3.24 Billion, a 12.43 % Decrease Year-Over-Year
- Fourth Quarter Net Profit of SAR 3.24, a 46.88 % Decrease vs Third Quarter 2018
SABIC today reported SAR 21.54 Billion for 2018, attributed to increased production and sales volumes, up by six percent compared with 2017. The positive results also reflect an improvement in average selling prices for products in line with the higher oil price environment. The results reflect success of the company’s transformation initiatives, which was designed to make SABIC even more competitive globally.
Announcing the results at a press conference in Riyadh on Jan. 27, Yousef Al-Benyan, SABIC Vice Chairman and CEO, said: "Our continuous commitment on cost control and business excellence delivered by our business transformation program has ensured that we continue to remain ahead of new changes in the global petrochemical market. This has helped deliver our strong performance during 2018.” He continued, “Our continued growth is underlined still further by progressing our 2025 global growth strategy though a number of strategic alliances, notably with Exxon Mobil in the US and with Clariant in Switzerland.”
Despite the fourth quarter seeing higher sales volumes up by two percent on the previous quarter, a decline in petrochemical prices significantly affected profitability in the fourth quarter relative to earnings earlier in the year.
He added, “SABIC is not immune to turbulence and the cyclical nature of our industry, but our long-term growth strategy, global footprint and new business structure hedge well against some current and emerging political and economic trends. Despite this, we are looking to strengthen our presence and leverage strategic partnerships globally, especially in Asia, US, Europe and Africa.
He noted that despite the end of year challenging pricing environment, SABIC maintains its focus on continued business transformation and operational excellence as we continue to pursue our strategic long-term growth objectives. As such, in the fourth quarter SABIC established the SABIC Agri-Nutrients Investments Company – a standalone company to consolidate the SABIC’s diverse agri-nutrients portfolio to create more synergies and efficiency.