Three petchem firms capture 89% of sector profits in 2013

Updated 20 May 2014
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Three petchem firms capture 89% of sector profits in 2013

Profits of the listed petrochemical firms grew by 3 percent by the end of 2013 to reach SR34.77 billion compared to SR33.9 billion in 2012, according to a financial report.
Three out of 14 listed firms captured 89 percent of sector profits in 2013. Saudi Basic Industries Corp. (SABIC) alone contributed 72 percent of the sector overall profits or 24 percent of all listed companies, the report prepared by Al-Eqtesadiah daily, said.
Shares of Saudi Arabian Fertilizer Company (SAFCO) and Yanbu National Petrochemical Company (Yansab) stood at 9 percent and 8 percent, respectively, the report said.
Profits of petrochemical sector represented 34 percent of the profits of the listed companies, which reached SR103 billion in 2013 compared to 35 percent in 2012 (SR96.6 billion), the report said.
Meanwhile, profits of Q4, 2013 of the sector grew by 27 percent to reach SR9.8 billion compared to SR7.7 billion in Q4, 2012, which was the highest since Q3 of 2011 (SR11.2 billion), according to the report.
Nine firms have positively contributed to the profit growth of the sector in 2013 while the position of the remaining five firms was negative, the report said.
SABIC came top of the positive players in profits growth of the petrochemical sector at 52 percent where its profits grew by 2 percent to SR25.2 billion in 2013 compared to SR24.8 billion in 2012, followed by Saudi Kayan Petrochemical Company (Saudi Kayan) at 49 percent as its losses dropped by 55 percent to SR346 million in 2013 compared to SR772 million in 2012, Petrochem at 46 percent where the company curtailed losses by 86 percent to SR66 million compared to SR464 million in 2012, the report said.
On the other hand, Sahara Petrochemicals increased its profits by 183 percent to SR579 million in 2013 compared to SR204 million in 2012. Five other companies have positively contributed to the profit growth of the sector - Advanced, Yansab, Saudi Group, Luann and Spechem at 26 percent, 23 percent, 20 percent, 7 percent and 2 percent, respectively, the report added.
In the meantime, profits of Safco dropped by 18 percent in 2013 to SR3.2 billion compared to SR3.9 billion in 2012. Likewise, profits of Tasnee shrank by 33 percent to SR1.2 billion compared to SR1.8 billion in 2012, and PetroRabigh has its profits dropped by 27 percent to SR359 million compared to SR489 million in 2012, the report said.


Flight rights group takes Ryanair to court over strike compensation

Updated 38 min 52 sec ago
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Flight rights group takes Ryanair to court over strike compensation

  • Ryanair had to cancel around 1 in 6 flights last week due to a walk-out by pilots in five European countries
  • The disruption affected 55,000 travelers

BERLIN: German passenger rights company Flightright is taking Ryanair to court over whether it should pay financial compensation to passengers affected by strikes at Europe’s largest low-cost carrier.
Ryanair had to cancel around 1 in 6 flights on Friday due to a walk-out by pilots in five European countries, disrupting an estimated 55,000 travelers.
The worst affected country was Germany, where 250 flights affected around 42,000 passengers.
EU rules state that passengers can claim monetary compensation of up to €400 for flights within the region for canceled or delayed flights, unless the reason is extraordinary circumstances, such as bad weather.
Strikes have generally fallen under extraordinary circumstances although a ruling by the European Court of Justice in April said that a wildcat strike by staff at German airline TUIfly following a restructuring could not be classed as extraordinary circumstances. Flightright said it believes Ryanair is therefore obliged to pay monetary compensation to customers and so has filed a complaint with a court in Frankfurt in a bid to clarify the rules around strikes.
A spokeswoman for the court said she was aware of the Flightright statement, but that she had not yet seen the complaint.
Ryanair said it fully complies with the European legislation on the matter, known as EU261.
“Under EU261 legislation, no compensation is payable when the union is acting unreasonably and totally beyond the airline’s control. If this was within our control, there would be no cancelations,” a spokesman said.
Passenger rights groups such as Flightright help passengers to claim compensation from airlines under EU261 rules but in exchange for a share of the compensation received.
Many European airlines, including Ryanair, therefore urge passengers to file claims with them directly instead.