Latest news with #AbdullahAl-Saadoon
Argaam
19-03-2025
- Business
- Argaam
Sipchem CEO: SAMAPCO plant shutdown costs SAR 130M in Q4, positive market recovery signals ahead
Sahara International Petrochemical Co.'s (Sipchem) CEO Abdullah Al-Saadoon said that the maintenance work on the Sahara and Maaden Petrochemical Co. (SMAPCO) plant cost about SAR 30 million, adding that the impact on products was much greater, reaching SAR 100 million during the fourth quarter 2024. In an interview with Al Arabiya TV, Al Saadoun indicated that the Q4 2024 results were affected by the one-month halt of the SMAPCO plant, in addition to impact from acquisition by associates, which had an impact of about SAR 57 million. He added that 2024 was a challenging year, as product prices decreased by 8% YoY, and sales were affected by maintenance work at several plants. Al-Saadoun also pointed out that there are positive indicators of market recovery due to the improvement in the prices of some products during 2025, despite the lack of clarity, indicating that some products began to rebound, such as methanol, whose price rose by 8%, and EPA, which increased by 4%, in addition to the improvement in polypropylene prices. The shutdown of some plants in Asia and Europe may help rebalance supply and demand, which will reflect positively on prices, said the CEO, pointing out that the resolution of geopolitical crises in Europe and the region will positively impact the markets this year. Regarding the new import tariffs between Europe and the US, he explained that Sipchem may become more competitive in the European market, which accounts for 22% of the company's sales, expecting prices to rise as a result of these developments. Furthermore, ending the Red Sea crisis will positively affect the company, as shipping costs have increased by about 25-30%, which means that stabilizing the situation will reduce export costs, thus reflecting positively on prices and profitability. Commenting on the decision to shut down the ethyl acetate plant, Al-Saadoun stressed that Sipchem continuously reviews the viability of its plants, especially those that see poor profitability, noting that the temporary closure came to minimize losses until market conditions improve. He added that the company imports feedstock for vinyl acetate and ethanol, which witnessed a surge in their prices during 2024, making the continued operation of the plant economically unfeasible. Regarding the petrochemical sector, Al-Saadoun pointed out that the sector goes through cycles of ups and downs, as is the case with other sectors, but remains one of the essential industries that are part of various aspects of life. He emphasized that the importance of petrochemicals in providing sustainable economic solutions, which means that the demand for its products will continue in the medium and long term, stressing that Sipchem continues to invest strongly in the future of the petrochemical industry. Sipchem posted a 64% drop in the 2024 net profit to SAR 426.1 million, compared to SAR 1.17 billion a year earlier. The fourth-quarter net earnings tumbled 88% to SAR 19.9 million from SAR 158.7 million in Q4 2023, according to Argaam 's data.
Bahrain News Gazette
27-02-2025
- Business
- Bahrain News Gazette
Saudi Arabia's Ministry of Energy awards prestigious feedstock allocation for joint project between Sipchem and LyondellBasell
Award marks important milestone in feasibility study of Saudi-based world-scale steam cracker and derivatives AL KHOBAR, Kingdom of Saudi Arabia and HOUSTON, Feb. 27, 2025 (GLOBE NEWSWIRE) — Sipchem and LyondellBasell (LYB) have been awarded a feedstock allocation from the Ministry of Energy of Saudi Arabia supporting a joint feasibility study for a world-scale mixed feed cracker complex combined with a diversified derivative portfolio. Sipchem and LYB will assess the viability and optimal structure for the project, which will be advanced on a 60% (Sipchem) | 40% (LYB) ownership basis. The allocation lays the foundation for both parties to define the technical, financial and commercial configuration for the project. Construction of the joint project would result in the manufacturing of petrochemical products and derivatives to serve customers both within the Kingdom of Saudi Arabia and global export markets while creating several thousand local job opportunities. With cost-advantaged feedstocks, world-scale assets, leading technologies, and proximity to key international markets, the joint project has the potential to create lasting value. The project will benefit from LYB's technologies to produce differentiated grades of polyethylene and polypropylene, including the Catalloy product line of elastomeric polyolefins. Sipchem and LYB will jointly explore carbon management solutions including the use of low emission technologies, in support of the parties' and the Kingdom's net zero ambitions. 'Our partnership with LyondellBasell marks an important milestone in our pursuit of ambitious goals for sustainable growth and the strengthening of our position within the petrochemical market locally and globally,' said Abdullah Al-Saadoon, Sipchem chief executive officer. 'Through this collaboration, we will leverage the latest cutting-edge, energy-efficient technologies, significantly contributing to our environmental objectives and enhancing the sustainability of our operations. We extend our gratitude to the Ministry of Energy for its unwavering support of the petrochemical industry, which has been instrumental in enabling us to achieve our shared goals. We are enthusiastic about advancing this project and are committed to delivering high-quality products that will drive the development of the industrial sector in the Kingdom of Saudi Arabia.' 'This feedstock allocation is a vital step in our collaboration with Sipchem,' said Peter Vanacker, LyondellBasell chief executive officer. 'As we move forward with our joint study, with a long-term partnership in mind, we further strengthen our commitment to Saudi Arabia. Thank you to the Ministry of Energy for their support and collaboration as we build on our successful partnership. We look forward to being a larger part of the Kingdom's thriving economy, which continues to grow and provide numerous opportunities for development and innovation.' About LyondellBasell We are LyondellBasell (NYSE: LYB) ― a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors and society. As one of the world's largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. For more information, please visit or follow @LyondellBasell on LinkedIn. About Sipchem Sipchem, officially known as Sahara International Petrochemical Company (TASI: SIPCHEM) ― a Saudi-based leading innovator in the petrochemical sector, founded in 1999. The company provides high-quality chemical and polymer products that serve diverse industries, including construction, automotive, electronics, and packaging. With a strong focus on sustainability, Sipchem integrates energy efficiency, waste reduction, and advanced technologies into its operations to support a circular economy and minimize its environmental impact. Through continuous investment in research and development, Sipchem delivers innovative solutions that address evolving global needs and contribute to long-term growth. For more information, please visit or follow @SipchemGlobal on LinkedIn. Cautionary Note Regarding Forward-looking Statements The statements in this release relating to matters that are not historical facts are forward-looking statements. Actual results could differ materially based on factors including, but not limited to, our ability to meet the requirements of the allocation award; the results of the feasibility study described in this release; future investment decisions and the successful development, construction and operation of the proposed facilities described in this release; our ability to implement our strategy and successfully align our asset base with that strategy; and general economic conditions in the Kingdom of Saudi Arabia and globally. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the 'Risk Factors' section of our Form 10-K for the year ended December 31, 2023, which can be found at on the Investor Relations page and on the Securities and Exchange Commission's website at There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law. Or
Yahoo
27-02-2025
- Business
- Yahoo
Saudi Arabia's Ministry of Energy awards prestigious feedstock allocation for joint project between Sipchem and LyondellBasell
Award marks important milestone in feasibility study of Saudi-based world-scale steam cracker and derivatives AL KHOBAR, Kingdom of Saudi Arabia and HOUSTON, Feb. 27, 2025 (GLOBE NEWSWIRE) -- Sipchem and LyondellBasell (LYB) have been awarded a feedstock allocation from the Ministry of Energy of Saudi Arabia supporting a joint feasibility study for a world-scale mixed feed cracker complex combined with a diversified derivative portfolio. Sipchem and LYB will assess the viability and optimal structure for the project, which will be advanced on a 60% (Sipchem) | 40% (LYB) ownership basis. The allocation lays the foundation for both parties to define the technical, financial and commercial configuration for the project. Construction of the joint project would result in the manufacturing of petrochemical products and derivatives to serve customers both within the Kingdom of Saudi Arabia and global export markets while creating several thousand local job opportunities. With cost-advantaged feedstocks, world-scale assets, leading technologies, and proximity to key international markets, the joint project has the potential to create lasting value. The project will benefit from LYB's technologies to produce differentiated grades of polyethylene and polypropylene, including the Catalloy product line of elastomeric polyolefins. Sipchem and LYB will jointly explore carbon management solutions including the use of low emission technologies, in support of the parties' and the Kingdom's net zero ambitions. 'Our partnership with LyondellBasell marks an important milestone in our pursuit of ambitious goals for sustainable growth and the strengthening of our position within the petrochemical market locally and globally,' said Abdullah Al-Saadoon, Sipchem chief executive officer. 'Through this collaboration, we will leverage the latest cutting-edge, energy-efficient technologies, significantly contributing to our environmental objectives and enhancing the sustainability of our operations. We extend our gratitude to the Ministry of Energy for its unwavering support of the petrochemical industry, which has been instrumental in enabling us to achieve our shared goals. We are enthusiastic about advancing this project and are committed to delivering high-quality products that will drive the development of the industrial sector in the Kingdom of Saudi Arabia.' 'This feedstock allocation is a vital step in our collaboration with Sipchem,' said Peter Vanacker, LyondellBasell chief executive officer. 'As we move forward with our joint study, with a long-term partnership in mind, we further strengthen our commitment to Saudi Arabia. Thank you to the Ministry of Energy for their support and collaboration as we build on our successful partnership. We look forward to being a larger part of the Kingdom's thriving economy, which continues to grow and provide numerous opportunities for development and innovation.' About LyondellBasell We are LyondellBasell (NYSE: LYB) ― a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors and society. As one of the world's largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare. For more information, please visit or follow @LyondellBasell on LinkedIn. About Sipchem Sipchem, officially known as Sahara International Petrochemical Company (TASI: SIPCHEM) ― a Saudi-based leading innovator in the petrochemical sector, founded in 1999. The company provides high-quality chemical and polymer products that serve diverse industries, including construction, automotive, electronics, and packaging. With a strong focus on sustainability, Sipchem integrates energy efficiency, waste reduction, and advanced technologies into its operations to support a circular economy and minimize its environmental impact. Through continuous investment in research and development, Sipchem delivers innovative solutions that address evolving global needs and contribute to long-term growth. For more information, please visit or follow @SipchemGlobal on LinkedIn. Cautionary Note Regarding Forward-looking Statements The statements in this release relating to matters that are not historical facts are forward-looking statements. Actual results could differ materially based on factors including, but not limited to, our ability to meet the requirements of the allocation award; the results of the feasibility study described in this release; future investment decisions and the successful development, construction and operation of the proposed facilities described in this release; our ability to implement our strategy and successfully align our asset base with that strategy; and general economic conditions in the Kingdom of Saudi Arabia and globally. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the "Risk Factors" section of our Form 10-K for the year ended December 31, 2023, which can be found at on the Investor Relations page and on the Securities and Exchange Commission's website at There is no assurance that any of the actions, events or results of the forward-looking statements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. Forward-looking statements speak only as of the date they were made and are based on the estimates and opinions of management of LyondellBasell at the time the statements are made. LyondellBasell does not assume any obligation to update forward-looking statements should circumstances or management's estimates or opinions change, except as required by law. NEWS INQUIRIES: Phone: +1-713-309-4791 Email: Or Phone: +966 13 801 9385 Email: dokelly@
