Sabic profit jumps 80% in first quarter



Net profit at Saudi Basic Industries Corp (Sabic), one of the world’s biggest petrochemical producers, jumped 80 per cent from a year earlier in the first quarter of 2017 on the back of higher sales prices for its products.

Sabic, which is majority state-owned, made a net profit of 5.24 billion Saudi riyals (Dh5.14bn) in the three months to March 31, up from 2.91bn riyals in the year-earlier period, the company said in a bourse statement on Monday.

That was in line with the forecasts of analysts polled by Reuters, who had on average predicted that Sabic would make a quarterly profit of 5.35bn riyals.

Gross sales for the first quarter totalled 36.95bn riyals, up 10 per cent from 33.47bn riyals a year ago.

The company’s results are closely tied to oil prices and global economic growth because its products – plastics, fertilizers and metals – are used extensively in construction, agriculture, industry and consumer goods manufacturing.

Like other Saudi companies, Sabic began reporting its results under international IFRS accounting standards this year, so some of its figures for the first quarter of 2016 were restated. Last year, it reported a net profit of 3.41bn riyals for the quarter.

Kayan Petrochemical, in which Sabic owns a 35 per cent stake, reported a net profit of 265.5 million riyals for the quarter on Sunday, recovering from a loss of 195m riyals the previous year.

Sabic’s shares closed up 1.1 per cent at 99.59 riyals on Monday, ahead of its results release. The company’s shares are up 8.9 per cent for the year to date, with Saudi Arabia’s Tadawul All Share Index down 2.9 per cent over the same period.

Sabic and ExxonMobil last month announced the selection of a site in San Patricio, Texas for the construction of a US$9.3bn petrochemicals plant, as part of ExxonMobil’s $20bn “Growing the Gulf” initiative announced in March.

jeverington@thenational.ae

* with Reuters

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The Transfiguration

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Three stars

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Indoor cricket in a nutshell

Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai

16 Indoor cricket matches are 16 overs per side

8 There are eight players per team

There have been nine Indoor Cricket World Cups for men. Australia have won every one.

5 Five runs are deducted from the score when a wickets falls

Batsmen bat in pairs, facing four overs per partnership

Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.

Zones

A Front net, behind the striker and wicketkeeper: 0 runs

B Side nets, between the striker and halfway down the pitch: 1 run

Side nets between halfway and the bowlers end: 2 runs

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TO A LAND UNKNOWN

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Business Insights
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New Zealand 15
Tries: Laumape, J Barrett
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British & Irish Lions 15
Penalties: Farrell (4), Daly

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Al Jazira 3 Persepolis 2
Jazira:
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Persepolis: Alipour (42'), Mensha (84')

Nepotism is the name of the game

Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.