Saudi Basic Industries Profit Rises 5.4% on Higher Prices

Saudi Basic Industries Profit Rises 5.4% on Higher Prices

First-quarter revenue at Saudi Basic Industries Corp., the Middle East’s largest petrochemicals producer, rose on greater costs and gross sales volumes, regardless of a 1.1 billion Saudi riyal ($290 million) cost for restructuring.

Net revenue elevated 5.four % to five.51 billion riyals in contrast with the identical quarter a yr earlier, the Riyadh-based firm stated in an announcement to the Saudi inventory market. The end result was consistent with an estimate of 5.55 billion riyals from three analysts compiled by Bloomberg. Sales rose 15 % to 41.9 billion riyals over the interval.

Sabic, as the corporate is thought, proposed this month to build a headquarters in Houston for its western hemisphere operations to capitalize on the U.S. shale increase. It additionally plans to construct factories in Africa and is contemplating three nations for the funding, Chief Executive Officer Yousef Abdullah Al Benyan advised reporters in Riyadh on Sunday, with out specifying the nations.

Sabic shares had been zero.1 % greater at 118.80 riyals on the Saudi inventory change at 11:12 a.m. native time. The shares have climbed 17 % this yr as the value of crude oil, a petrochemicals feedstock, elevated 12 %.

The firm is concentrating on a number of areas for potential mergers or acquisitions, together with the U.S., Europe and China, in addition to Africa, Al Benyan stated. “We hope that by the end of this year there is something new to be materialized,” he stated.

Sabic’s buy of a 24.99 % stake in Swiss chemical maker Clariant AG ought to be mirrored within the Saudi firm’s first-quarter earnings, Al Benyan stated in January. He advised reporters on Sunday it was untimely to debate a doable improve on this stake.

Sabic has 27 billion riyals in borrowings maturing this yr, all of that are topic to “our normal assessment and options” for doable refinancing, Al Benyan stated. “We will assess them according to their return on investment,” he stated.

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