SABIC will not have competitive advantage for feedstock prices: CEO

Saudi Arabian Oil Co.'s (Saudi Aramco) acquisition of a 70% stake in the Saudi Basic Industries Corporation (SABIC) from the Public Investment Fund (PIF) will not give SABIC any competitive or preferential advantage in terms of feedstock prices compared to its peers, Al Arabiya TV reported, citing Vice Chairman and CEO, Yousef Al-Benyan.

"The feedstock prices are determined by the Ministry of Energy and not Aramco,” he further stressed.

SABIC will maintain its identity and business portfolio, in line with the Saudi Corporate Law and criteria set by the Capital Market Authority (CMA).

"Despite incurring SAR 949 million losses in H1 2020, the company's decision to pay dividend reflected its robust financial position and resilience amid the global economic challenges," Al-Benyan also noted.

The dividend payment decision also echoed SABIC's sustainable policy, as the board decision was taken before finalizing the acquisition deal with Aramco.

Saudi Aramco said today it completed the acquisition of a 70% stake in SABIC from the PIF, the sovereign wealth fund of Saudi Arabia, for a total of SAR 259.125 billion ($69.1 billion), Argaam reported.

SABIC also announced a cash dividend of 15%, or a SAR 1.5 a share for H1 2020.