First Published: 2017-02-22

Saudi petroleum giant SABIC's net profits fall in 2016
Saudi firm, one of world's largest producers of petrochemicals, fertilisers, plastics, metals, sees net profit drop of 4.95 percent last year.
Middle East Online

SABIC building in Riyadh

RIYADH - Saudi petrochemical giant SABIC's net profits fell almost five percent last year, in part due to lower sales prices, the firm announced Wednesday.

Petrochemical prices are influenced by trends in global crude prices, which recovered in 2016 after a fall the previous year.

SABIC, one of the world's largest producers of petrochemicals, fertilisers, plastics and metals, is the largest publicly traded firm in the oil-rich Arab states of the Gulf.

The company's net profit drop of 4.95 percent last week compared with a sharp fall of almost 19 percent for 2015.

In a statement to the Saudi Stock Exchange, SABIC reported net profits of 17.84 billion riyals ($4.76 billion) against 18.77 billion riyals the previous year.

SABIC blamed "lower average sales prices" for the fall in net income for the period ending December 31.

It also cited an increase in "zakat" provisions, or religious alms giving, as well as an additional impairment against its Arabian Industrial Fibres Co affiliate.

Global crude prices have stabilised above $50 a barrel after OPEC and non-OPEC countries agreed late last year to jointly cut production.

Prices collapsed from above $100 a barrel in 2014 before rallying from around $30 at the beginning of 2016.

Saudi Arabia is the world's biggest oil exporter but companies like SABIC reflect the direction the kingdom aims for as it diversifies its industrial, business and investment base under reforms launched last year.

 

Egypt mourns 235 victims of Sinai mosque attack

Saudi Crown Prince calls Iran supreme leader 'new Hitler'

Turkish support key as US tries to hold on in Syria

First aid flight in weeks lands in Sanaa

Baghdad's Shabandar cafe marks century since opening

Syrian opposition chooses head of unified delegation

Palestinian office in US to remain open

Turkey says Trump pledged to stop arming Kurds

At least 235 killed in Egypt mosque attack

Turkey president sues main opposition party leader

Lebanon's Hariri brings status quo back with him

Activists say 'everybody knew' about Libya slave trade

Saudi-led coalition clears passenger flights to Sanaa

Erdogan says no contact 'at the moment' with Assad

Lebanon's Jumblatt criticises Saudi Arabia, Iran

China says it will make efforts on Syria reconstruction

Turkey to detain 79 former teachers in post-coup probe

Syrian opposition agrees to send united delegation to Geneva talks

Hezbollah hails PM's suspension of resignation

Syrian opposition aims for unity at talks in Riyadh

Egypt police kill 3 Islamists in shootout

Turkey unsure if Assad to be part of Syria political transition

Migrant arrivals from Libya down since EU deal

Palestinian factions leave Cairo talks with little progress

Sudan’s Bashir looks to Putin for ‘protection’ from US aggression

China, Djibouti forge 'strategic' ties

IS propaganda channels fall quiet in 'unprecedented' hiatus

Kremlin to create Syria congress despite Turkey ‘reservations’

Netanyahu berates deputy minister for 'offensive' remarks on US Jews

Egypt PM heads to Germany for medical treatment

Egypt destroys 10 SUVs carrying arms on Libya border

Outrage in Iraq over 'child marriage' bill

Iraq launches operation to clear last IS holdouts from desert

Saudi-led coalition to reopen Yemen airport, port to aid

Turkey court rules to keep Amnesty chief in jail

France calls for UN meeting on Libya slave-trading

Egypt detains 29 for allegedly spying for Turkey

WTO panel to hear Qatar’s complaint against UAE blockade

Three dead as diphtheria spreads in Yemen

Lebanon’s Hariri suspends resignation

Israel seizes explosive material at Gaza border

Activists call for release of UK journalist held by IS

Bahrain upholds jail sentence for activist

Iraq attacks at lowest since 2014

Turkey continues crackdown in post-coup probe