SABIC today reported its earnings for the first quarter of 2021. The company’s revenue for the first quarter reached SAR 37.53 billion ($ 10.01 billion), representing an increase of 14% compared to the previous quarter and a 24% increase year-on-year.
Net profits during the first quarter totaled SAR 4.86 billion [$ 1.30 billion]. This was higher than the net profits of SAR 2.25 billion [$ 0.60 billion] in the previous quarter and the net loss of SAR 1.05 billion [$ 0.28 billion] in the first quarter of 2020.
Yousef Al-Benyan, SABIC Vice Chairman and CEO, said: “SABIC’s financial performance has seen a positive start to 2021. The first quarter saw rising oil prices and a tight supply and demand balance. These elements, combined with growing demand as the global economy continues to recover, resulted in higher prices and margins for most of our products.”
Mr. Al-Benyan continued: “Our priorities in 2021 are to remain focused on the key fundamentals. This includes maintaining our financial strength, and excelling in our commitments to operational performance, sustainability, customer focus and innovation. We are optimistic about our future growth, assuming the continued successful rollout of vaccines globally.”
Among the major developments this quarter, SABIC announced that it will begin to market Aramco’s allocation of Sadara Chemical Company (Sadara) products, beginning July 1, 2021. Through these changes, SABIC expects to drive further supply chain efficiencies, elevate its brand, strengthen combined product and services offering, and maintain competitive preference in the global chemicals industry.
Notably, Aramco and SABIC also announced their intention to transfer the marketing & sales responsibility of a number of Aramco petrochemicals and polymers products to SABIC, and the offtake and resale responsibility of a number of SABIC products to Aramco Trading Company.
During this quarter, SABIC also demonstrated its continued commitment to innovation and collaboration through a joint agreement with BASF and Linde to realize the world’s first electrically heated steam cracker furnace. By using electricity from renewable sources, the new technology has the potential to reduce CO2 emissions by as much as 90%.
SABIC also became the world’s second most valuable brand in the chemicals industry in 2021, compared to the third most valuable brand last year - according to the 2021 Chemicals 25 and Global 500 reports published by Brand Finance. The company was also named among the winners of the annual Edison Awards, which honor the world’s most innovative new products, services and business leaders.