SABIC net profits fall in 2016

The headquarters of Saudi Basic Industries Corp (SABIC) is seen in Riyadh, Saudi Arabia, in this April 19, 2016 file photo. (REUTERS)
Updated 23 February 2017
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SABIC net profits fall in 2016

RIYADH: Saudi petrochemical giant SABIC’s net profits fell almost 5 percent last year, in part due to lower sales prices, the firm announced Wednesday.
Petrochemical prices are influenced by trends in global crude prices, which recovered in 2016 after a fall the previous year.
SABIC, one of the world’s largest producers of petrochemicals, fertilizers, plastics and metals, is the largest publicly traded firm in the oil-rich Gulf region.
The company’s net profit drop of 4.95 percent last week compared with a sharp fall of almost 19 percent for 2015.
In a statement to the Saudi Stock Exchange, SABIC reported net profits of SR17.84 billion ($4.76 billion).
SABIC blamed “lower average sales prices” for the fall in net income for the period ending Dec. 31.
It also cited an increase in “zakat” provisions, or religious alms giving, as well as an additional impairment against its Arabian Industrial Fibres Co. affiliate.
Global crude prices have stabilized above $50 a barrel after the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries agreed late last year to jointly cut production.
Prices collapsed from above $100 a barrel in 2014 before rallying from around $30 at the beginning of 2016.
Saudi Arabia is the world’s biggest oil exporter but companies like SABIC reflect the direction the Kingdom aims for as it diversifies its industrial, business and investment base under reforms launched last year.


Dubai Aerospace signs $480 million loan deal

Updated 21 May 2018
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Dubai Aerospace signs $480 million loan deal

DUBAI: Dubai Aerospace Enterprise (DAE), one of the world’s largest aircraft lessors, said on Monday it had signed a four-year loan deal for $480 million.
DAE, a government-controlled company set up in 2006, has become one of the world’s largest aircraft lessors after acquiring Dublin-based AWAS last year.
The acquisition tripled the Dubai aircraft leasing and maintenance company’s portfolio to about 400 aircraft worth more than $14 billion.
The $480 million loan, which includes both conventional and Islamic finance tranches, has a so-called “accordion facility” allowing it to be increased to up to $800 million.
With the loan, the company’s unsecured revolving credit facilities increase to between $1.125 billion and $1.445 billion, depending on final size of the latest deal, Firoz Tararpore, DAE’s chief executive, said in a statement.
“On a pro forma basis as of December 2017, if this facility is fully drawn and if the proceeds are used to pay down secured indebtedness, DAE’s percentage of unsecured debt would increase from 26 percent to a range of 31-34 percent.”
Last year, the company issued $2.3 billion in senior bonds split across three tranches last year, partly to finance the AWAS acquisition.
Tarapore said in an interview last week that DAE was in talks to buy a near-record total of 400 jetliners from Airbus and Boeing in an order that could be worth more than $40 billion at list prices.
Al Ahli Bank of Kuwait coordinated the latest loan deal and was also the lead arranger and joint bookrunner together with First Abu Dhabi Bank, while Noor Bank joined the deal as lead arranger.