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

Updated 29 July 2014

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.

Oil giant Shell rebounds into profit in third quarter

Updated 15 min 50 sec ago

Oil giant Shell rebounds into profit in third quarter

  • Income boosted by modest recovery in global crude demand and more stable market

LONDON: Anglo-Dutch oil titan Royal Dutch Shell on Thursday logged third quarter net profit of $489 million (€415 million), rebounding after a vast coronavirus-driven loss in the prior three months.

Profit after tax for July-September was boosted by steadier oil prices and contrasted with a vast net loss of $18.1 billion in the second quarter, when Shell was slammed by Covid-19.

Earlier this year, oil prices dropped off a cliff — and even briefly turned negative — as airlines grounded planes worldwide, businesses closed their doors and the world economy tanked into a downturn.

Crude futures also crashed on the back of a vicious price war between key producers.

But in the third quarter, Shell was boosted by a modest recovery in global crude demand and the more stable oil market, having taken a colossal $16.8-billion charge in April-June.

Crude oil currently stands at just under $40 per barrel, still below the roughly $60 a barrel seen in the third quarter of last year, when the group posted a net profit of $5.9 billion.

Despite higher prices, the oil market remains depressed by the coronavirus health emergency which has slammed economic growth and savaged the world’s appetite for oil.

That has in turn sparked thousands of job losses across the energy sector and beyond.

Shell has already announced that it is seeking to axe up to 9,000 jobs or more than 10 percent of its global workforce in response to fallout from the deadly pandemic.

The company’s fierce rival BP, which posted a third quarter net loss of $450 million on Tuesday, is in the process of axing about 10,000 jobs or 15 percent of its staff.

“Our decisive actions taken earlier in the year have solidified our operational and cash delivery,” said Shell CEO Ben van Beurden, who oversees 80,000 staff across more than 70 countries.

“The strength of our performance gives us the confidence to lay out our strategic direction (and) resume dividend growth,” he added.

Shell added Thursday that it would increase its shareholder payout by about 4 percent to 16.65 US cents for the third quarter, and annually thereafter.

The group had stated in September that it was aiming to generate annual savings of between $2 billion and $2.5 billion via a massive restructuring drive. Although oil prices have rebounded to a steadier footing, the market has dived this week as traders fretted over the imposition of lockdowns in Europe to combat a second wave of COVID-19 infections.

World oil prices sank Thursday by another 5.0 percent on fears that new coronavirus lockdowns in Europe would further dent demand for crude.

Shell, meanwhile, warned over the outlook for the fourth quarter amid mounting concern over the pandemic’s resurgence.

“As a result of Covid-19, there continues to be significant uncertainty in the macroeconomic conditions with an expected negative impact on demand for oil, gas and related products,” it said.

“Furthermore, global developments and uncertainty in oil supply have caused volatility in 2020 in commodity markets.”