Profits of petchem firms up 14% to SR18.5bn in H1

Updated 29 July 2014
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Profits of petchem firms up 14% to SR18.5bn in H1

Profits of the listed petrochemical companies rose by 14.4 percent to SR18.54 billion in the first half of the current year compared to SR16.2 billion in the same period last year, according to a financial report.
Capital of the 14 listed firms stood at SR92 billion as their market capitalization reached SR631 billion, or 30 percent of the value of all companies listed in the market, said the report, compiled by Al-Hayat daily.
Saudi Basic Industries Corp. (SABIC) has the biggest capital among all petrochemical firms at SR30 billion, followed by Saudi Kayan Petrochemical Company (Saudi Kayan) at SR15 billion, Petro Rabigh at SR8.76 billion whereas Alujain Corporation has the least capital of SR692 million, the report said.
Based on the latest data, profits of Saudi Arabian Fertilizer Company (SAFCO) dropped by 8.8 percent to SR 1.48 billion in H1 (2014) compared to SR 1.62 billion in H1, 2013.
Meanwhile, the National Industrialization Co. (Tasnee) has its profits increased by 10.72 percent to SR729.1 million compared to SR658.5 million in the comparable periods.
Profits of other companies varied in H1 as follows: Yanbu National Petrochemical Company (Yansab) SR1.16 billion compared to SR1.33 billion (— 12.63 percent), Petro Rabigh SR585 million compared to losses of SR894.8 million, Saudi Industrial Investment Group (SIIG) SR 471 million compared to SR290 million (+62.41 percent), the National Petrochemical Company (Petrochem) SR338 million compared to SR9.5 million (+ 3458 percent), the Advanced Petrochemical Co. (Advanced) SR322 million compared to SR254.6 million (+26.5 percent), Saudi International Petrochemical Co. (Sipchem) SR313.3 million compared to SR238.5 million (+31.36 percent), Sahara Petrochemicals SR 284.9m compared to SR 252.1 (+13 percent), Alujain Corporation SR67.34 million compared to SR19.05 million (+253.49 percent), Methanol Chemicals Company SR40.07 million compared to SR14.11 million (+184 percent), the report said.
On the other hand, SABIC captured the highest profits in H1 at SR12.9 billion which represented 70 percent of the sector’s total profits, the report added.


BMW plans massive cost cuts to keep profits from sputtering

Updated 20 March 2019
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BMW plans massive cost cuts to keep profits from sputtering

  • ‘Our business model must remain a profitable one in the digital era,’ chief executive Harald Krueger said
  • Total number of employees is set to remain flat at around 135,000 worldwide

MUNICH: German high-end carmaker BMW warned Wednesday it expects pre-tax profits “well below” 2018 levels this year as it announced a massive cost-cutting scheme aimed at saving $13.6 billion (€12 billion) in total by 2022.
A spokesman said that “well below” could indicate a tumble of more than 10 percent.
The Munich-based group’s 2019 result will be burdened with massive investments needed for the transition to electric cars, exchange rate headwinds and rising raw materials prices, it said in a statement.
Meanwhile it must pump more cash into measures to meet strict European carbon dioxide (CO2) emissions limits set to bite from next year.
And a one-off windfall in 2018’s results will create a negative comparison, even though pre-tax profits already fell 8.1 percent last year.
Bosses expect a “slight increase” in sales of BMW and Mini cars, with a slightly fatter operating margin that will nevertheless fall short of their 8.0-percent target.
“We will continue to implement forcefully the necessary measures for growth, continuing performance increases and efficiency,” finance director Nicolas Peter said at the group’s annual press conference.
BMW aims to achieve €12 billion of savings in the coming years through “efficiency improvements” including reducing the complexity of its range.
“Our business model must remain a profitable one in the digital era,” chief executive Harald Krueger said.
This year, most new recruits at the group will be IT specialists, while the total number of employees is set to remain flat at around 135,000 worldwide.
Departures from the sizeable fraction of the workforce born during the post-World War II baby boom and now reaching retirement age “will allow us to adapt the business even more to future topics,” BMW said.
All the firm’s forecasts are based on London and Brussels reaching a deal for an orderly Brexit and the United States foregoing new import taxes on European cars.
“Developments in tariffs” remain “a significant factor of uncertainty” in looking to the future, finance chief Peter said, adding that “the preparations for the UK’s exit from the EU will weigh on 2019’s results as well.”
In annual results released ahead of schedule last Friday, BMW blamed trade headwinds and new EU emissions tests for net profits tumbling 16.9 percent in 2018, to €7.2 billion.