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104% growth in SABIC profits during the last quarter of 2020

SCBC Team – Riyadh

The Saudi Basic Industries Corporation (SABIC) achieved profits estimated at 2.22 billion riyals (about $ 592 million) during the fourth quarter of last year 2020, with a growth rate of 104% over the net profit in the previous quarter.

Youssef Al-Bunyan, Vice Chairman and CEO of SABIC, indicated that the company’s revenues amounted to 32.85 billion riyals (about 8.76 billion dollars) in the fourth quarter of 2020, compared to 29.30 billion riyals (about 7.81 billion dollars) in the previous quarter. He attributed this growth achieved by the company to an improvement in economic activity, which in turn led to an improvement in demand for products, and the flexibility achieved by SABIC in operational processes and the strength of its global supply chain, in a way that contributed to enhancing its position and its march towards long-term growth.

Al-Bunyan discussed the economic challenges imposed by the Coronavirus pandemic, stressing during the SABIC Financial Results Announcement Conference for the fourth quarter of 2020, that these challenges that were imposed over the past year highlighted the company’s business model, its ability to enhance its flexibility, and its operational excellence and strengthening its supply chain and global presence, to continue its success and reap the advantages of its transformative march, explaining that the new reality after Corona contributed to accelerating the achievement of the trends that were monitored at the beginning of the year within the long-term plans and that the proactive preventive measures taken by the company contributed to a major role in supporting growth, And adjust costs, and enhance competitiveness.

With regard to the Saudi oil giant Aramco’s acquisition of 70% of SABIC’s shares, Al-Bunyan stressed that the cooperation of the two companies represents an excellent opportunity for them to identify aspects of complementarity between them and benefit from them, in order to achieve their mutual benefit and in the interest of customers, related parties and shareholders.

SABIC had presented a summary of its joint work with Aramco, explaining that they focus on strategic transformation; to improve growth, joint ventures management, and the service delivery model, indicating that it is expected that SABIC’s annual share of the value arising from Cooperation with Aramco will have between 1.5 and 1.8 billion dollars by 2025

SABIC also previously announced the conclusion of an agreement to purchase shares of SAFCO, a company specialized in agricultural nutrients. To establish SABIC Agri-Nutrients Company as an emerging economic entity, within the framework of SABIC’s strategic ambitions that aim to achieve more focus and flexibility for agricultural nutrients business, and to provide a platform for sustainable growth, making it the most prominent national company and a global leader in the agricultural nutrient industry.

SABIC’s activities continued during the fourth quarter of 2020, including the establishment of a separate entity for specialized products business; to provide significant value by unlocking the growth potential of this independent entity, highlighting its advantages and meeting the requirements of its customers.