An average price increase of 26%, a revenue growth of 40%, and a profit of $1.7 billion
Youssef Al-Benyan, Vice Chairman and CEO of SABIC, confirmed to Asharq Al-Awsat that the Russian-Ukrainian war crisis has strengthened the diversification of the company’s products and given it financial and economic strength due to the presence of its factories in major regions around the world and its presence in these markets with the availability of supply chains. This was reflected in its performance in the first quarter of this year.
This came during SABIC’s announcement yesterday (Thursday) of its profits for the first quarter of this year, as the company’s revenues amounted to 52.64 billion riyals ($ 14.04 billion), which represents an increase of 3 percent compared to the previous quarter and an increase of 40 percent over the same quarter of the year. the past.
Al-Benyan said that the Russian and Ukrainian crisis had an impact on the prices of energy markets and some agricultural products, but “SABIC” was not directly affected by these events, stressing that the current crisis, in addition to the Corona pandemic, has strengthened the company’s strength in diversifying its products and its presence in most major markets. mission internationally.
The CEO explained that the financial performance was strong in the first quarter of the year, similar to the good results in the previous period, driven by many factors, most notably the high product prices, their diversity and their strong global presence.
Al-Benyan added that the current year will witness the continuation of the implementation of the growth strategy by focusing on owning sources of competitive feedstock and enhancing global presence, which will contribute to strengthening the financial position, achieving operational flexibility, and fulfilling obligations related to standards of environmental, social and governance practices.
At a time when average product prices increased by about 26 percent as a result of the current market conditions, the net income for the first quarter of this year amounted to 6.47 billion riyals ($1.73 billion), which is higher than the net income of 4.97 billion riyals ($1.32 billion) in the previous quarter and from Net income is 4.86 billion riyals ($1.30 billion) in the same quarter of last year.
The most prominent features of the company’s first quarter profits are its strong financial performance, high product prices, benefiting from the diversity of the package and the strength of its global presence, as well as the early start-up of the US Gulf Coast project.
SABIC’s priorities this year are in promoting profitable growth and achieving the advantages of cooperation with Saudi Aramco, as well as competitiveness and operating model, in addition to employee safety, culture of excellence, rapid development methodologies, stability and growth of profits, maintaining a strong and independent credit rating, in addition to promoting sustainability and innovation. Through carbon neutrality and a commitment to a circular economy.
SABIC announced the start of operation of the global manufacturing facility within the US Gulf Coast Development Project in San Patricio County, Texas, USA.
The company has completed its acquisition of Clariant’s 50 percent stake in “Scientific Design”, a leader in licensing high-performance industrial technologies and developing catalysts. This step opens new growth prospects for “SABIC” by enhancing the high-performance capabilities of its products business. specialized.
On the other hand, during the first quarter of 2022, SABIC continued to achieve greater sustainability and innovation in the global chemical industry, as it recently launched a product (LNP ELCRINTM), a copolymer of bio-origin that has been approved by the International Certificate of Carbon and Sustainability, which represents support for the industry Consumer electronics in achieving zero carbon emissions goals.
In the same context, five innovative technologies from SABIC were selected among the winners of the annual Edison Awards, which honor the world’s most innovative products, services and business leaders.
The awards that SABIC won in four different categories reflect the innovative and diversified range of solutions offered by the company.
SABIC’s commitment to adopting the highest standards of environmental, social and governance practices was highly commended during the first quarter of this year, as the company was awarded the “Best Environmental, Social and Governance Practices” award at the 2021 Saudi Stock Exchange Awards.