RIYADH — SABIC recorded 10.71% rise in profits on improved prices, increased production, reduced operational costs

SABIC has announced strong third quarter results, building on improved prices, reduction in operational costs, increase in production levels, and enhanced manufacturing reliability.

In comments after announcing the results at a press conference at SABIC headquarters in Riyadh on Oct. 30, Yousef Al-Benyan, SABIC Vice Chairman and CEO, stressed that a reduction in operational and administrative costs contributed to enhancing the company’s position in the market. “The impact of these cost reductions were clearly reflected in the Q3 financial results. We are leveraging the outcome of our transformation program to further enhance the company’s strong position,” he said, while stressing the company’s capabilities in facing different challenges.

Al-Benyan announced the financial results for the third quarter.

Net profit for the quarter was SR 5.79 billion as compared to SR 5.23 billion in the same period last year, an increase of 10.71 percent, and increased to SR 3.71 billion as compared to the previous quarter, a 56.06 percent increase.

Gross profit for the third quarter amounted to SR14.11 billion, compared to SR13.22 billion for the corresponding period last year, an increase of 6.73 percent, and SR10.35 billion compared to the previous quarter, an increase of 36.33 percent.

Operational profits for the third quarter amounted SR8.56 billion compared to SR7.86 billion for the corresponding period last year, an increase of 8.91 percent, and SR5.43 billion compared to the previous quarter, an increase of 57.64 percent.

The net profits for the nine-month period of this year amounted to SR 14.73 billion compared to SR13.1 billion for the corresponding period last year, an increase of 12.44 percent.

Gross profits for the nine-month period of this year amounted to SR38.14 billion compared to SR 6.22 billion for the corresponding period last year, an increase of 5.3 percent.

Operational profits for the nine-month period of this year amounted to SR 22.34 billion compared to SR19.93 billion for the corresponding period last year, an increase of 12.09 percent.

The share profits for the nine-month period of this year amounted to SR4.91 compared to SR4.37 for the corresponding period last year.

Al-Benyan stressed that SABIC achieved these results despite the challenging conditions in the global market.

On the company’s role in supporting Saudi Vision 2030, he said that SABIC is exerting every effort to contribute to its success and has taken practical steps in this direction.

The growth in Q3 net profits as against the same period last year has been attributed to a rise in the average selling price and increased sales. SABIC attributed the profits for the current period compared to the same period last year to an increase in the average selling price. The company attributed the rise in Q3 net profits as against the previous quarter to an increase in the average selling price as well as sales.

SABIC also announced that the total sales during Q3 amounted to SR39.65 billion compared to SR 5.80 billion for the corresponding period last year, an increase of 11 percent. The total Q3 sales compared to the previous quarter amounted to SR35.17 billion, an increase of 13 percent.

The total sales for the current period amounted to SR111.78 billion compared to SR105.52 billion for the corresponding period last year, an increase of six percent.

Comprehensive income for the current quarter amounted to SR7.54 billion compared to SR6.33 billion for the corresponding period of last year, an increase of 19 percent, and SR6.66 billion compared to the previous quarter, an increase of 13 percent.

Comprehensive income during the current period amounted to SR 22.12 billion as against SR15.45 billion for the corresponding period last year, an increase of 43 percent.

The shareholders equity (excluding non-controlling interests) at the end of the period was SR161.8 billion compared to SR152.64 billion at the end of the corresponding period last year, an increase of six percent. — SG