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.

 

World leaders condemn Britain terror attack

UN-backed Syria talks restart in Geneva

10 Egyptian soldiers killed in Sinai roadside bombings

Erdogan warns Europeans risk being ‘unsafe’ on world’s streets

Saudi film festival launch postponed after sandstorm

Israel arrests Jewish teen over anti-Semitic terror threats

Man attempts to drive into crowd of shoppers in Belgium’s Antwerp

An Egypt court is to reopen a corruption probe into Mubarak

Bahrain frees award-winning AFP photographer

Erdogan slams 'pressure' on Turks in Bulgaria ahead of vote

Israel policeman suspended after caught on video beating Palestinian

Turkey summons Russia envoy over soldier death in Syria

Bahrain sentences three to death for police bombings

Britain arrests eight as IS claims Westminster attack

EU summons Turkey envoy over 'safety' remarks

400,000 'trapped' in west Mosul's Old City

Qaeda, IS developing harder-to-detect bombs say experts

Terrorist attack at London’s Houses of Parliament

2016 saw sharp rise in illegal Israeli settlement projects

US-led coalition vows lasting victory against IS

Bahrain arrests photographer on unspecified charges

Humanitarian groups demand access to Yemen civilians suffering 'open-air massacre'

33 killed in US-led air strike on north Syria

Rights group says Libyan military committed war crimes

Israel seals East Jerusalem home of Palestinian attacker's family

Migrants in Europe at risk of drug-resistant tuberculosis

Iraqis urged to avoid hurried mass grave exhumations

Turkey steps up objection to US flight laptop ban

Britain joins US in banning laptops on flights from Turkey, Arab world

Anti-IS coalition gathers in Washington to hear Trump plan

Turkey links Gulen to murder of Armenian journalist

Kuwait bans hit movie ‘Beauty and the Beast’

Five dead in Mogadishu bombing

Khamenei fleshes out 'Made in Iran' vision

Turkey to ask US to reverse flight laptop ban

Israeli army says Hezbollah commander killed by own men

Kurds celebrate Newroz in Turkey's southeast despite shooting

Turkey’s AKP says no more campaign rallies in Germany

Chinese president calls for peace in meeting with Netanyahu

Iraq forces gain ground in Mosul

US bans electronic devices from cabins on Middle East flights

Erdogan says yes vote best response to 'fascist Europe'

Arab Israeli woman gets 50 months prison for joining IS

All Syria sides confirm attendance at Geneva talks

Abadi: Trump 'more engaged' in terror fight