Home / NEWS / SABIC reports 10.71% rise in Q3-2017 net profits


SABIC reports 10.71% rise in Q3-2017 net profits

by Martin Menachery on Nov 1, 2017


Yousef Al-Benyan, vice chairman and CEO, SABIC, speaks at a press conference at SABIC headquarters in Riyadh on 30 October 2017.
Yousef Al-Benyan, vice chairman and CEO, SABIC, speaks at a press conference at SABIC headquarters in Riyadh on 30 October 2017.

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 30 October 2017, Yousef Al-Benyan, vice chairman and CEO, SABIC, 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 programme to further enhance the company’s strong position,” Al-Benyan said, while stressing the company’s capabilities in facing different challenges.

At the press conference, Al-Benyan announced the financial results for the third quarter.

Net profit for the quarter was $1.54bn as compared to $1.39bn in the same period last year, an increase of 10.71%, and increased to $0.99bn as compared to the previous quarter, a 56.06% increase.

Gross profit for the third quarter amounted to $3.76bn, compared to $3.53bn for the corresponding period last year, an increase of 6.73%, and $2.76bn compared to the previous quarter, an increase of 36.33%.

Operational profits for the third quarter amounted $2.28bn compared to $2.1bn for the corresponding period last year, an increase of 8.91%, and $1.44bn compared to the previous quarter, an increase of 57.64%.

The net profits for the nine-month period of this year amounted to $3.85bn compared to $3.49bn for the corresponding period last year, an increase of 12.44%.

Gross profits for the nine-month period of this year amounted to $10.17bn compared to $9.66bn for the corresponding period last year, an increase of 5.3%.

Operational profits for the nine-month period of this year amounted to $5.96bn compared to $5.31bn for the corresponding period last year, an increase of 12.09%.

The share profits for the nine-month period of this year amounted to $1.3 compared to $1.17 for the corresponding period last year.

During the press conference, 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, Al-Benyan 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 $10.57bn compared to $9.55bn for the corresponding period last year, an increase of 11%. The total Q3 sales compared to the previous quarter amounted to $9.38bn, an increase of 13%.

The total sales for the current period amounted to $29.81bn compared to $28.14bn for the corresponding period last year, an increase of 6%.

Comprehensive income for the current quarter amounted to $2.01bn compared to $1.69bn for the corresponding period of last year, an increase of 19%, and $1.78bn compared to the previous quarter, an increase of 13%.

Comprehensive income during the current period amounted to $5.9bn as against $4.12bn for the corresponding period last year, an increase of 43%.

The shareholders equity (excluding non-controlling interests) at the end of the period was $43.14bn compared to $40.7bn at the end of the corresponding period last year, an increase of 6%.


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