He said the company, which has several offices in India, was also looking for new ventures in the subcontinent.
Al-Mady was speaking to newsmen at the SABIC headquarters here following the formal announcement of the company’s second quarter performance for 2011.
“India is a huge market, the (Indian) government is thinking of attracting new investments and SABIC is looking at investments in India — if there are any good investments in petrochemicals there, products from refineries,” Al-Mady later said in remarks published in a Reuters report.
“If there are refineries attached to petrochemical plants, we will be looking at that.”
According to Reuters, Al-Mady said a decision would be made this year on SABIC affiliate Saudi Arabian Fertilizers Co.’s (SAFCO) proposed 1 million-ton urea factory in Jubail. Production is due to begin in the second half of 2013.
A plan to build a facility with China’s Sinopec, estimated to cost at least $1 billion and to be operating by 2015, is on track, Al-Mady said.
Operations at Saudi Kayan Petrochemicals will start commercial production in the second half of this year, Al-Mady added, having originally been slated for the first half.
In view of the global economic changes, Al-Mady said SABIC had diversified its operations in markets such as India, China and the Middle East including the Kingdom. He also stressed that the economic developments in Europe and the US did not have an impact on the operations of the company.
He said he did not foresee a reason for a drop in the demand for petrochemicals in the near future.
Commenting on the oil prices, Al-Mady said that current oil prices were conducive for the petrochemical market. He said the existing range is good for the market. The preferred crude price is around $100 a barrel, he said.
The demand for petrochemical products in East Asia including China is one of the factors attributed to the increased profits achieved during the second quarter of this year, Al-Mady added at the press conference.
SABIC’s net profit rose 61 percent in the second quarter to a record SR8.1 billion from a year earlier, on the back of SR49 billion in quarterly revenue.
“What keeps me awake at night is keeping the successes we have,” Al-Mady said in the Reuters report. “This is about the SR8.1 billion ... How long can we sustain this? It is challenging.”
Asked whether SABIC was interested in any assets being divest as a result of the split-up of ConocoPhillips and the divestment of its refining arm, announced three days ago, “We always look at everything, and match it with company strategy,” he said. “We always evaluate these opportunities, we are always on the lookout for very important acquisitions and for organic growth.”
He said the sales in the second quarter reached SR49 billion, compared to SR39 billion during the corresponding period last year.
Commenting on the oil prices, Al-Mady said that current oil prices were conducive for the petrochemical market. The existing range is good for the market, he said, adding that the preferred crude price is around $100 a barrel
SABIC Vice President Finance Fawaz Al-Fawaz and Executive Vice President Mutlaq Al-Morished were also present at Sunday’s press conference.
Answering a question, Al-Mady said the company is not under pressure to tap the debt market as it is financially stable and sound. He said SABIC is in a good position to grow its own business while making acquisitions when necessary.
SABIC is the largest and most profitable non-oil company in the Middle East and one of the world’s five largest petrochemicals manufacturers.
As a public company based in Riyadh, 70 percent of its shares are owned by the Saudi government, while the remaining 30 percent is held by private investors in Saudi Arabia and other Gulf countries.
