SABIC reports 4.5% rise in net profit in 2017
Yousef Al-Benyan, SABIC Vice Chairman and CEO, has announced an increase in SABIC’s net profit for 2017, attributing the positive results to the company’s successful implementation of its transformation program across all its sectors.
While releasing the financial results for 2017 at a press conference at SABIC headquarters in Riyadh on January 28, Al-Benyan referred to Saudi Arabia’s budget for 2018 that comprised the largest governmental expenditure program, and to the Custodian of the Two Holy Mosques support for the private sector with SR 72 billion. These incentives will stimulate the performance of the private sector as defined by Saudi Vision 2030, he said.
Al-Benyan expressed a positive outlook for the global economy in 2018 as the American and European markets expected to witness growth, along with stabile Chinese market.
He attributed the decrease in the profit in the fourth quarter to a reduction in production volumes due to periodic maintenance of some SABIC plants aimed at enhancing the future reliability of these plants.
The decrease is attributed to a decline in Hadeed’s returns due to slow down in the construction sector. This sector is expected to pick up momentum this year because of the expected increase in governmental expenditure.
Net profit for the fourth quarter amounted to SR 3.67 billion compared to SR 4.51 billion for the same quarter in 2016, a decrease of 18.63 percent, and compared to net profit of SR 5.79 billion for the preceding quarter, a decrease of 36.61 percent. This was reported in the consolidated financial results of the year ended December 31, 2017.
Gross profit for the fourth quarter amounted to SR 12.61 billion compared to SR 11.09 billion of the same quarter 2016, an increase of 13.71 percent, and compared to the previous quarter SR 14.03 billion, a decrease of 10.12 percent.
Fourth quarter operating profit amounted to SR 6.65 billion, as compared to SR 6.16 billion for the same quarter last year, an increase of 7.95 percent, and compared to operating profit of SR 8.7 billion for the preceding quarter, a decrease of 23.56 percent.
Net profit for 2017 was SR 18.4 billion as compared to SR 17.61 billion for 2016, an increase of 4.49 percent. Gross profit was SR 50.29 billion for 2017 compared to SR 47.24 billion for 2016, an increase of 6.46 percent. Operating profit for the year was SR 29.37 billion as compared with SR 25.87 billion in 2016, an increase of 13.53 percent. Share profit in 2017 was SR 6.13 as against SR 5.87 in 2016.
Leader, Global Communications