SABIC posts net profit of SR1.09 billion in third quarter

In Saudi Arabia, SABIC’s NUSANED initiative has supported local industry development and SABIC’s localization agenda. (AN file photo)
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Updated 25 October 2020

SABIC posts net profit of SR1.09 billion in third quarter

  • SABIC’s ongoing fight to help the world overcome the pandemic continued playing a central role this quarter as part of the company’s global CSR program

RIYADH: Saudi Basic Industries Corp. (SABIC) on Sunday reported a 19 percent increase in its third quarter earnings as compared to the previous quarter.

The company’s revenue for the third quarter of the current fiscal year reached SR29.3 billion ($7.81 billion). SABIC recorded a net profit of SR1.09 billion.

Earnings before interest, taxes, depreciation and amortization (EBITDA) at SR5.67 billion also represented a 62 percent increase quarter over quarter and a 26 percent decrease as compared to Q3 of the previous year.

Income from operations amounted to SR2.1 billion, which was reportedly higher than the loss from operations of SR1.26 billion in the previous quarter and lower than the profit from operations in the third quarter of 2019.

However, the revenues plunged by 11 percent year-on-year due to the coronavirus disease (COVID-19) pandemic.

Yousef Al-Banyan, SABIC vice chairman and CEO, said: “The third quarter of 2020 benefited from an improvement in economic activity and an increase in oil price, which translated into higher product prices. During this time, the strength of our global supply chain continued to allow us to meet the challenges facing the global economy, while our business and operational performance continued to demonstrate resilience. This reflected in higher sales volumes and improved margins in the third quarter of 2020.”

He said faced with the pandemic, the whole world had to adapt to a "new normal."

“We recognize the important role that the chemical industry plays in the recovery of the global economy and our role within that. As the road to recovery continues, we will remain focused on protecting the health and welfare of our employees, supporting the business requirements of our customers, and collaborating with governments and health authorities around the world,” the CEO said.

The third quarter also saw SABIC commence the implementation phase of its alignment as the chemical arm of Saudi Aramco, positioning it well to achieve long-term growth and to create and deliver value for its stakeholders.

Al Benyan said: “The portfolios of SABIC and Saudi Aramco complement one another, and we are both global organizations with a deep understanding of the worldwide marketplace. Together, we have embarked on a new journey based on shared values. We share the responsibility of defining the path of both companies and realize the vital importance of creating and delivering value for our shareholders.”

The reporting period witnessed numerous examples of SABIC’s ongoing collaboration with its partners to deliver sustainable solutions.

In September, Aramco, SABIC and the Institute of Energy Economics, Japan, demonstrated the successful production of blue ammonia and the world’s first shipment of the product from Saudi Arabia to Japan. Another major milestone was reached through a groundbreaking initiative with Spanish energy leader Iberdrola to transform its polycarbonate facility in Cartagena, Spain, into the world’s first large-scale chemical production site to run entirely on renewable power.

During the same month, SABIC partnered with a leading UK supermarket chain, Tesco, to conduct a trial proving that soft plastic — that would typically go to waste — can be recycled multiple times into new food grade plastic as part of a closed loop recycling system.

SABIC’s ongoing fight to help the world overcome the pandemic continued playing a central role this quarter as part of the company’s global CSR program. To date, the company has delivered 191 global programs in 22 countries, aimed at reaching over 32 million beneficiaries.

In Saudi Arabia, SABIC’s NUSANED initiative has supported local industry development and SABIC’s localization agenda. It also signed a SR37 million JV deal to manufacture sustainable wood plastic composites.


Saudi Arabia signs deal with German firm to distribute COVID-19 vaccine

Updated 11 min 21 sec ago

Saudi Arabia signs deal with German firm to distribute COVID-19 vaccine

  • The CureVac vaccine successfully passed the first phase of clinical trials in early November
  • The announcement is part of the Saudi government’s initiatives to prevent the spread of COVID-19

JEDDAH: Saudi Arabia has signed an agreement with a German firm to supply and distribute a coronavirus vaccine in the Kingdom.
Saudi Pharmaceutical Industries and Medical Appliances Corp. (SPIMACO) said on Sunday that it had signed the agreement with biopharmaceutical company CureVac on Nov. 27.
Under the agreement, SPIMACO will apply for the necessary approvals from the Ministry of Health and the Saudi Food and Drug Authority (SFDA) to meet the requirements for distributing the vaccine.
The CureVac vaccine successfully passed the first phase of clinical trials in early November. 
Results showed an increase in virus-neutralizing antibodies in all participants who took the dose, and more than 90 percent of patients were shown to have developed antibodies against both the receptors and the COVID-19 spike protein.
CureVac is aiming to lodge a submission to the European Medicines Agency during the first quarter of 2021.
The agreement includes the possibility of extending the supply and distribution rights to the UAE, Kuwait, Bahrain and Oman.
The announcement is part of the Saudi government’s initiatives to prevent the spread of COVID-19. 
In a statement on Nov. 11, Abdullah Al-Assiri, assistant deputy minister for preventive health, said the government had previously signed an agreement to receive early supplies of two or three different vaccines that were in the final stages of their clinical trials.
“Saudi Arabia will be one of the first countries to receive the vaccines,” he said during an interview on Saudia TV.
Saudi health officials have previously announced plans to offer free vaccinations by the end of 2021 to 70 percent of residents who have not contracted the virus.