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Abdulrahman Al-Fageeh, CEO of SABIC
Saudi Basic Industries Corporation (SABIC) has not reached 2019 demand levels yet as demand for most petrochemicals has been greatly affected by the Covid-19 pandemic, which led to a slowdown in global economic activities, the company’s CEO, Abdulrahman Al-Fageeh, told Argaam.
On the sidelines of a press conference held by SABIC today, Aug. 3, Al-Fageeh stated that what distinguishes SABIC is its own specialized products, which were not affected during or after the pandemic, whether through production cuts or closures of its plants around the world.
He went on to say that SABIC's sales had increased in previous years and had remained stable, as they were not affected by petrochemical market demand.
SABIC is optimistic that demand will grow, despite geopolitical and other factors that led to a shrink in demand for most petrochemical products, Al-Fageeh said.
The Saudi petrochemical giant, he added, witnessed a slight improvement in food packaging and products used in the automotive industry during the second quarter of 2023. However, demand has not met expectations yet and is expected to grow slightly during the second half of this year.
Meanwhile, Salah Al-Hareky, SABIC's Executive Vice President for Corporate Finance, attributed the increase in Q2 2023 profits to the re-measurement gains in option rights related to joint venture agreements.
According to Argaam, SABIC’s profits decreased 87% to SAR 1.8 billion by the end of H1 2023, from SAR 14.4 billion during the same period in 2022. Q2 2023 profit amounted to SAR 1.2 billion.
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