RIYADH — 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 here Sunday, Al-Benyan referred to Saudi Arabia’s budget for 2018 that comprised the largest governmental expenditure program, and to Custodian of the Two Holy Mosques King Salman’s support for the private sector with SR72 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 SR3.67 billion compared to SR4.51 billion for the same quarter in 2016, a decrease of 18.63 percent, and compared to net profit of SR5.79 billion for the preceding quarter, a decrease of 36.61 percent. This was reported in the consolidated financial results of the year ended Dec. 31, 2017.

Gross profit for the fourth quarter amounted to SR12.61 billion compared to SR11.09 billion of the same quarter 2016, an increase of 13.71 percent, and compared to the previous quarter SR14.03 billion, a decrease of 10.12 percent.

Fourth quarter operating profit amounted to SR6.65 billion, as compared to SR6.16 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 SR18.4 billion as compared to SR17.61 billion for 2016, an increase of 4.49 percent. Gross profit was SR50.29 billion for 2017 compared to SR47.24 billion for 2016, an increase of 6.46 percent.

Operating profit for the year was SR29.37 billion as compared with SR25.87 billion in 2016, an increase of 13.53 percent. Share profit in 2017 was SR6.13 as against SR5.87 in 2016. — SG