Abdulrahman Al-Fageeh, CEO of Saudi Basic Industries Corp. (SABIC)
Saudi Basic Industries Corp. (SABIC) CEO Abdulrahman Al-Fageeh said Q4 2024 performance was impacted by higher fixed costs, which typically rise in winter due to increased petroleum product prices.
Sales volumes tend to decline in the fourth quarter, especially in December, he said in response to a question by Argaam during the press conference to announce 2024 results.
Al-Fageeh said the petrochemicals sector benefited from easing monetary restrictions and lower interest rates in 2024, aiding the sector’s recovery.
However, challenges remain, including high supply levels pressuring product prices and ongoing geopolitical uncertainties, he said.
Al-Fageeh anticipated demand for end products to stabilize during Q1 2025 compared to Q4 2024.
He added that demand is expected to improve in the transportation, industrial solutions, and electronics sectors.
The CEO stated that proceeds from selling SABIC’s stake in Bahrain’s Alba will be used to expand petrochemical investments and diversify the company’s portfolio.
Al-Fageeh confirmed that the Fujian petrochemical complex in China remains on schedule.
SABIC’s Executive Vice President for Corporate Finance, Salah Al-Hareky, said fluctuations in Swiss chemicals firm Clariant’s stock price affected Q4 2024 results.
The investment valuation depends on Clariant’s stock price at the time of the financial statement’s preparation, resulting in gains when prices rise and losses when they fall, he explained.
Excluding this impact, SABIC’s earnings exceeded analysts’ expectations.
According to Argaam, SABIC posted a SAR 1.54 billion net profit for 2024, compared with a SAR 2.77 billion net loss in 2023. However, Q4 2024 net loss stood at SAR 1.89 billion.
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