04 November 2013
Share of petrochemical sector dropped to 30 percent of the overall profits achieved by the listed firms in Q3, 2013, according to a financial report.
Profits of the listed companies grew by 11 percent to hit SR30 billion in Q3 compared to SR27 billion in the same period last year.
According to the report, prepared by Al-Eqtisadiah daily, the share of petrochemical sector stood at 34 percent of SR26.9 billion profits achieved by the listed companies in Q3, 2012.
The petrochemical sector has its profits dropped by one percent to SR9 billion compared to SR9.1 billion in Q3, 2012, according to the report.
The profit fall of the sector in Q3 was mainly attributed to the fall of profits at the Saudi Arabian Fertilizer Company (SAFCO) and Rabigh Refining and Petrochemical Co. (PetroRabigh) where their profits dropped by SR415 million and SR395 million, respectively, compared to the figures of Q3 2012, the report said.
On the other hand, the major profit boosters in Q3, 2013 were Yanbu National Petrochemical Company (Yansab), Saudi Kayan Petrochemical Company (Saudi Kayan), Saudi Basic Industries Corporation (SABIC), and Sahara Petrochemicals Company (Sahara) which added profits of SR429 million, SR222 million, SR160 million and SR105 million, respectively, the report said.
In general, SABIC profits, which stood at SR6.5 billion in Q3, 2013, accounted for 22 percent of the listed firms' profits but its share however shrank by 1.5 percent, which was 23.5 percent in the same period last year, according to the report.
Profits of the sector grew by 13 percent to reach SR8 billion in Q3, 2013 compared to the figures of Q2, 2013. However, profits of the sector dropped by 5 percent to 24.9 billion in the first nine months of the current year compared to SR26.2 billion in the same period last year.
Companies of negative impact on Q3 profits:
• SAFCO: The company has its profits dropped by 36 percent to SR734 million in Q3, 2013 compared to SR1.1 billion in Q3, 2012. The company attributed profits fall to low selling prices of products.
• PetroRabigh: Profits fell by 97 percent to SR14 million in Q3, 2013 compared to SR409 million in Q3, 2012. The fall was attributed to decrease of profit margins of refined products and shutdown for unscheduled maintenance in September.
• National Industrialization Company (Tasnee): Profits fell by 46 percent to SR226 million compared to SR417 million in Q3, 2012. The profit fall was attributed to decrease of profit margins of titanium oxide (TiO2) products in addition to an increase in general and administrative expenses.
• PetroChem: Losses of the company rose to SR150 million in Q3, 2013 compared to SR120,000 in Q3 2012. The increase of losses was attributed to the operation (expenses) of Saudi Polymers project and work stoppage for unscheduled maintenance at the company's facilities.
Companies of positive impact on Q3 profits:
• Yansab: Profits soared by 98 percent to SR865 million in Q3 compared to SR436 million in Q3, 2012.
Overall, Yansab was the third largest booster of profit growth in Q3 at 14 percent after the Saudi Telecom Company (STC) and Saudi Arabian Mining Company (Maaden). Profit growth at the company was attributed to the increased production quotas and sales and improvement of prices of most products.
• Saudi Kayan: The company shifted from losses to profitability and posted profits of SR43 million in Q3 compared to losses of SR178 million. This (positive) shift was attributed to the increased quantities of produced and sold items and decrease of financial expenses.
• Saudi Basic Industries Corporation (SABIC): Its profits grew by 3 percent to reach SR6.5 billion in Q3 compared to SR6.3 billion in the same period last year. SABIC was the seventh largest booster of profit growth in Q3 at 5 percent. Its share to the market overall profit growth stood at 22 percent in Q3 compared to 23.5 percent in Q3, 2012. The profit growth was attributed to the increased quantities of sold items, higher selling prices and low funding costs despite decline in other incomes (revenues). Based on data released in Q3, SABIC's sales grew by 9 percent to SR48.8 billion compared to SR44.8 billion in Q3, 2012, the report said.
Share of petrochemical sector dropped to 30 percent of the overall profits achieved by the listed firms in Q3, 2013, according to a financial report.
Profits of the listed companies grew by 11 percent to hit SR30 billion in Q3 compared to SR27 billion in the same period last year.
According to the report, prepared by Al-Eqtisadiah daily, the share of petrochemical sector stood at 34 percent of SR26.9 billion profits achieved by the listed companies in Q3, 2012.
The petrochemical sector has its profits dropped by one percent to SR9 billion compared to SR9.1 billion in Q3, 2012, according to the report.
The profit fall of the sector in Q3 was mainly attributed to the fall of profits at the Saudi Arabian Fertilizer Company (SAFCO) and Rabigh Refining and Petrochemical Co. (PetroRabigh) where their profits dropped by SR415 million and SR395 million, respectively, compared to the figures of Q3 2012, the report said.
On the other hand, the major profit boosters in Q3, 2013 were Yanbu National Petrochemical Company (Yansab), Saudi Kayan Petrochemical Company (Saudi Kayan), Saudi Basic Industries Corporation (SABIC), and Sahara Petrochemicals Company (Sahara) which added profits of SR429 million, SR222 million, SR160 million and SR105 million, respectively, the report said.
In general, SABIC profits, which stood at SR6.5 billion in Q3, 2013, accounted for 22 percent of the listed firms' profits but its share however shrank by 1.5 percent, which was 23.5 percent in the same period last year, according to the report.
Profits of the sector grew by 13 percent to reach SR8 billion in Q3, 2013 compared to the figures of Q2, 2013. However, profits of the sector dropped by 5 percent to 24.9 billion in the first nine months of the current year compared to SR26.2 billion in the same period last year.
Companies of negative impact on Q3 profits:
• SAFCO: The company has its profits dropped by 36 percent to SR734 million in Q3, 2013 compared to SR1.1 billion in Q3, 2012. The company attributed profits fall to low selling prices of products.
• PetroRabigh: Profits fell by 97 percent to SR14 million in Q3, 2013 compared to SR409 million in Q3, 2012. The fall was attributed to decrease of profit margins of refined products and shutdown for unscheduled maintenance in September.
• National Industrialization Company (Tasnee): Profits fell by 46 percent to SR226 million compared to SR417 million in Q3, 2012. The profit fall was attributed to decrease of profit margins of titanium oxide (TiO2) products in addition to an increase in general and administrative expenses.
• PetroChem: Losses of the company rose to SR150 million in Q3, 2013 compared to SR120,000 in Q3 2012. The increase of losses was attributed to the operation (expenses) of Saudi Polymers project and work stoppage for unscheduled maintenance at the company's facilities.
Companies of positive impact on Q3 profits:
• Yansab: Profits soared by 98 percent to SR865 million in Q3 compared to SR436 million in Q3, 2012.
Overall, Yansab was the third largest booster of profit growth in Q3 at 14 percent after the Saudi Telecom Company (STC) and Saudi Arabian Mining Company (Maaden). Profit growth at the company was attributed to the increased production quotas and sales and improvement of prices of most products.
• Saudi Kayan: The company shifted from losses to profitability and posted profits of SR43 million in Q3 compared to losses of SR178 million. This (positive) shift was attributed to the increased quantities of produced and sold items and decrease of financial expenses.
• Saudi Basic Industries Corporation (SABIC): Its profits grew by 3 percent to reach SR6.5 billion in Q3 compared to SR6.3 billion in the same period last year. SABIC was the seventh largest booster of profit growth in Q3 at 5 percent. Its share to the market overall profit growth stood at 22 percent in Q3 compared to 23.5 percent in Q3, 2012. The profit growth was attributed to the increased quantities of sold items, higher selling prices and low funding costs despite decline in other incomes (revenues). Based on data released in Q3, SABIC's sales grew by 9 percent to SR48.8 billion compared to SR44.8 billion in Q3, 2012, the report said.
© Arab News 2013
