SABIC has released its earnings for the second quarter of 2019.
The company’s revenue for the second quarter reached SAR 35.87 billion, representing a decrease of four per cent compared to previous quarter, and a 17 per cent decrease year-on-year.
Net income during the second quarter amounted to SAR 2.12 billion, a decrease of 38 per cent compared to the first quarter of the year.
Yousef Al-Benyan, SABIC Vice Chairman and CEO, said: “The slowdown in global GDP growth coincides with a decline in petrochemical prices due to a significant increase in new supply capacity resulting in lower product prices and margins in key product lines.”
“Though lower petrochemical prices have negatively impacted SABIC’s second quarter results, our operational performance remains robust. SABIC remains optimistic on industry fundamentals over the long-term and we continue to invest for growth.”
“We recently received all the regulatory approvals to increase our stake in Al-Razi, the world’s largest methanol complex, to 75 per cent, and renewed our partnerships with Japan Saudi Arabia Methanol Company for a further 20 years. Also, we obtained all approvals to establish a petrochemical joint venture with ExxonMobil in the US Gulf Coast.”