Petchem firms’ profits down 3% to SR33.7bn

Updated 14 February 2015

Petchem firms’ profits down 3% to SR33.7bn

Net profits of the listed petrochemical sector firms dropped by 3 percent to SR33.76 billion in 2014 compared to SR34.8 billion in 2013, according to a financial report.
Similarly, profits of the petrochemical sector registered a sharp drop by 34 percent in Q4, 2014, to SR6.43 billion compared to SR9.8 billion in the same period last year, the report in Al-Hayat daily said.
Capitals of the 14 listed petrochemical sector stand at SR92 billion whereas their market capitalization stood at SR477 billion by the closure of stock market (Tadawul) last Thursday, the report added.
Saudi Basic Industries Corporation (SABIC) had the biggest capital among the petrochemical sector firms at SR30 billion, followed by Saudi Kayan Petrochemical Company (Saudi Kayan) at SR15 billion, Rabigh Refining and Petrochemical Company (PetroRabigh) at SR8.76 billion, whereas Alujain Corporation has the least capital of SR692 million, the report said.
Referring to the performance of the firms in 2014, the report said that 12 companies out of 14 listed firms registered growth in their profits.
SABIC topped the sector companies to have registered the highest profits in the year which stood at SR23.43 billion representing 69.4 percent of the sector profit growth. However, its profits dropped by 7.32 percent compared to profits of 2013, which stood at SR25.28 billion, the report said.
Saudi Arabian Fertilizer Company (SAFCO) was second biggest profit maker in 2014 when it achieved SR3.17 billion compared to SR3.16 billion in 2013. SAFCO’s share to the sector profit growth stood at 9.4 percent, according to the report.
Yanbu National Petrochemical Company (Yansab) was the third company to have achieved the highest profits at SR2.47 billion in 2014, or 7.4 percent of the sector’s profit growth, compared to SR2.64 billion in 2013, or a decrease of 6.31 percent.
Meanwhile, the National Industrialization Co. (Tasnee) has its profits dropped by 3.74 percent to SR1.13 billion compared to SR1.17 billion in 2014 and 2013, respectively, the report said.
On the other hand, the Saudi Industrial Investment Group’s (SIIG) net profits grew by 30.5 percent to SR932 million in 2014 compared to SR714 million in 2013. Likewise, the National Petrochemical Company (PetroChem) registered net profits of SR774.8 million in 2014 compared to losses o SR66.2 million in the previous year, the report said.
As regards companies sustaining losses in the year, Saudi Kayan registered net losses of SR44.4 million in 2014 compared to its losses of SR346.4 million, or a drop in losses of 87 percent. Namaa Petrochemical Co. (Namaa) posted losses of SR112.48 million in 2014 compared to SR44.32 million in 2013, or an increase of 153 percent in losses, the report said.


China's aviation regulator raised concerns with Boeing on 737 MAX design changes

Updated 12 December 2019

China's aviation regulator raised concerns with Boeing on 737 MAX design changes

  • China is reviewing the airworthiness of the plane
  • China was first country to ground plane in March

BEIJING: China’s aviation regulator raised “important concerns” with Boeing Co. on the reliability and security of design changes to the grounded 737 MAX, it said on Thursday, but declined to comment on when the plane might fly again in China.
China is reviewing the airworthiness of the plane based on proposed changes to software and flight control systems according to a bilateral agreement with the United States, Civil Aviation Administration of China (CAAC) spokesman Liu Luxu told reporters at a monthly briefing.
He reiterated that for the plane to resume flights in China, it needed to be re-certified, pilots needed comprehensive and effective training to restore confidence in the model and the causes of two crashes that killed 346 people needed to be investigated with effective measures put in place to prevent another one.
China was the first country to ground the 737 MAX after the second crash in Ethiopia in March and had set up a task force to review design changes to the aircraft that Boeing had submitted.
The US Federal Aviation Administration (FAA) will not allow the 737 MAX to resume flying before the end of 2019, its chief, Steve Dickson, said on Wednesday.
Once the FAA approves the reintroduction into service, the 737 MAX can operate in the United States, but individual regulators could keep the planes grounded in other countries until they complete their own reviews.
“Due to the trade war, the jury is still out on when China would reintroduce the aircraft,” said Rob Morris, Global Head of Consultancy at Ascend by Cirium.
Chinese airlines had 97 737 MAX jets in operation before the global grounding, the most of any country, according to Cirium Fleets Analyzer.