SABIC, a global leader in diversified chemicals, has announced a net profit of SAR246 million ($65.58 million) for the first quarter of 2024, compared to a SAR1.73 billion loss in Q4 2023. 

 

Compared to the same quarter (Q1) in 2023, the net profit is down about 62%. The company had made a profit of SAR660 million in Q1 2023.

 

The company reported quarterly revenue of SAR32.7 billion, down 10.3% year on year, which it said was due to a decline in the average selling prices by 3% and reduction in sales quantities by 7%.

 

Abdulrahman Al-Fageeh, SABIC CEO, said: "Global economic uncertainty remained high during the first quarter of 2024, caused by geopolitical and logistical issues. Adding to these challenges were high global inflation levels and strict lending policies. However, SABIC was able to achieve profits from its continuous operations amounting to SAR633 million, compared to a loss of SAR1.48 billion, which reflects high resilience in adapting to market conditions and the global economy.”

 

“These results were achieved due to an increase in average selling prices, improved performance of joint ventures and associate companies, and a decrease in selling, distribution, general and administrative expenses, thanks to the company’s continuous efforts to achieve optimum cost efficiency,” he said. 

 

Al-Fageeh emphasised that environment, health, safety, and security are fundamental pillars in the company's business strategy, which it fully adheres to. “SABIC strives to go beyond mere compliance, working to strengthen these aspects by applying global best practices.”

 

Speaking about SABIC's achievements this year, Al-Fageeh said: “Our innovative solutions won five Edison Awards 2024 for the fourth consecutive year. This recognition makes us feel proud and encourages us to excel in everything we do to be an innovation leader, adding more value to people's lives.”

 

In terms of growth and expansion of the company's business and production, engineering and construction work had begun for the SABIC Fujian complex in China, which would add a qualitative range of products to SABIC’s portfolio of chemicals and polymers and enhance the company's presence in the Chinese market.

 

SABIC also inaugurated the world’s first large-scale electrically heated steam olefins cracking furnace in Netherlands, which will pave the way for SABIC to fulfill its commitment to reach carbon neutrality by 2050. The new furnace has the potential to reduce carbon dioxide emissions compared to traditional cracking furnaces, and reflects SABIC’s close collaborations with its industry counterparts to serve global sustainability goals.

 

SABIC recently published its first Integrated Annual Report, which enhances the quality of disclosures through a single coherent narrative, incorporating financial and sustainability reporting streams.  -TradeArabia News Service