SABIC focuses on competitive value chain for rubber

Updated 27 November 2012
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SABIC focuses on competitive value chain for rubber

Saudi Basic Industries Corporation (SABIC) and its joint venture partner ExxonMobil hosted a symposium promoting rubber industry downstream development at SABIC headquarters in Riyadh recently.
Industry experts from around the world delivered topics ranging from technical applications to investment opportunities in a downstream rubber market in Saudi Arabia. The goal was to deliver all the applicable information needed to generate interest in developing this market.
Prince Turki bin Mohammed bin Nasser bin Abdulaziz, international relations manager of the Ministry of Commerce and Industry, was among the dignitaries at the symposium. The event was largely attended by government representatives, current rubber converters as well as related industry players who are seeking ways to diversify their business, besides prospective entrepreneurs looking to enter this market.
In his keynote speech titled “New Industry Opportunities in Saudi Arabia,” Prince Turki highlighted the competitive advantages that local converters enjoy as against external competitors.
Mohamed Al-Mady, SABIC vice chairman and CEO, said: “Creating an efficient and competitive value chain for synthetic rubber is our focus in this initiative. The institution of a strong rubber goods industry in Saudi Arabia will be the single most significant hallmark of success in this endeavor. It is crucial that we inspire the entrepreneurial spirit that will spark innovation in the Kingdom and propel its economy forward,” he said.
Koos van Haasteren, SABIC EVP, performance chemicals, said that one of the key features of development support is the SABIC Plastics Application Development Center (SPADC). “This state-of-the-art facility at the Riyadh Techno Valley, King Saud University, will be the largest center of its kind in the Middle East to support customers in characterization, processing and applications like mixing, extrusion, and injection molding capabilities.”
Mohammed A-Wakeel, GM Functional Polymers, said, “We had an excellent turnout at this first synthetic rubber symposium. We presented business cases for downstream investors in Saudi Arabia to consider. The symposium provided strong guidance to investors to help them set up future rubber processing companies in the Kingdom.”


Mobily quarterly loss down by 49%

Updated 26 April 2018
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Mobily quarterly loss down by 49%

Saudi telecom provider Mobily decreased its quarterly losses in Q1 2018 by 49 percent to SR93 million ($24.84 million) compared with SR182 million in Q4 2017. This was mainly due to a growth of revenues driven by a better mix of products mainly from data, the increase of efficiency in managing operational expenses, the impact of implementing IFRS 9 and 15, and the reversal of certain provisions that are no longer required, according to the company.

Revenues improved for the second consecutive quarter reaching SR2,833 million in Q1 2018 compared with SR2,827 million in Q4 2017, a slight increase of 0.2 percent, despite the following:

l The impact on sales at the beginning of the year due to the implementation of the value-added tax (VAT). 

l The reduction in interconnection rates by 45 percent.

l The seasonality of handset sales, and its increase in Q4 2017.

l The seasonal decrease related to the number of days in Q1. 

Without the decrease of the interconnection rates, revenues would have grown by 2 percent.

Mobily’s gross profit increased in Q1 2018 by 6.6 percent to SR1,663 million compared with SR1,560 million in Q4 2017. This increase is mainly due to the reduction in interconnection rates during Q1 2018 compared with those of Q4 2017 and the reduction in equipment costs in Q1 2018 compared with Q4 2017.

Mobily managed to grow its revenues for the second consecutive quarter. Q1 2018 revenues slightly decreased by one percent (SR33 million) to SR2,833 million compared with SR2,865 million in Q1 2017. Mobily achieved a stable level in revenues despite the general economic and regulatory changes, including the impact on sales in the beginning of the year due to the implementation of VAT, and the reduction in interconnection rates by 45 percent.

Without the decrease of the interconnection rates, the revenues would have grown by one percent year over year.

The gross profit stabilized at SR1,663 million in Q1 2018 compared to SR1,665 million in Q1 2017 with a slight decrease by 0.12 percent, despite the slight decrease in revenues.