Latest news with #AbdulrahmanAlFageeh
The National
04-05-2025
- Business
- The National
Sabic swings to surprise first-quarter loss amid macroeconomic uncertainty
Saudi Basic Industries Corporation (Sabic), the Middle East's biggest petrochemicals company, swung to a loss in the first quarter, a second quarterly drop in income in a row as feedstock prices rose amid continued global macro economic uncertainty. The company posted a net loss for the three months to end-March of 1.2 billion Saudi riyals ($320 million), compared with a net profit of 250 million riyals during the same period last year, it said on Sunday in a filing to the Tadawul stock exchange, where its shares are traded. The quarterly earnings is below analysts' estimates, who forecast a profit of 699 million riyals. Sabic also missed on revenue and earnings per share, according to Bloomberg. The company, which had also reported a net loss of 1.89 billion riyals in the final quarter of 2024, said rise in feedstock prices also dented income. Revenue during the latest quarter, however, rose by about 6 per cent annually to 34.6 billion riyals on the back of 'increase in the sales volume partially offset by lower average selling prices', the company said. During the first quarter, 'the global gross domestic product growth rate was 2.97 per cent, reflecting continuing macroeconomic uncertainties,' Abdulrahman Al Fageeh, chief executive of Sabic, said. 'The manufacturing Purchasing Managers' Index (PMI) growth remained weak throughout the quarter, indicating business pessimism.' The global economy is facing headwinds as President Donald Trump's push to put heavy tariffs on trading partners across the globe stokes fear of a full-blown trade war. The disruption in global trade will severely dent economic growth, with some analysts even projecting a global recession. Last month, the International Monetary Fund lowered 2025 growth forecast for the world economy, citing a radical change in trade policies led by Mr Trump's tariff regime. Sabic said its quarterly earnings reflect the rise in feedstock prices. The petrochemicals producer said it received a notification from Saudi Aramco earlier this year to increase the feedstock prices. The financial impact of that rise in prices is estimated to be equivalent to about 1 per cent of the company's annual cost of sales. 'Looking ahead, we remain focused on long-term value creation through operational excellence, transformation, and selective growth,' Sabic said. 'We continue to manage our capital investment with discipline, projecting an expenditure range of $3.5 billion to $4 billion for 2025.' Sabic share prices were down 2.12 per cent at 3.19pm UAE time on Sunday. The company also said its projects are progressing according to plan, including the Petrokemya MTBE plant and Sabic Fujian complex. Last year, Sabic announced investments worth $6.4 billion in China's Sabic Fujian petrochemical complex as part of its expansion plans in the world's second largest economy.
Trade Arabia
27-03-2025
- Business
- Trade Arabia
Innovation, collaboration key to sustainable growth: Sabic CEO
Sabic, a global leader in diversified chemicals, today (Martch 27) reaffirmed its advocacy for sustainable growth through innovation and collaboration at the Boao Forum for Asia (BFA)'s Annual Conference 2025 in China. Marking its sixth consecutive year as BFA's honorary strategic partner, Sabic underscored its commitment to fostering cross-industry synergies and cross-regional collaboration to unlock sustainable growth with key stakeholders across the value chain. With its continued investment in China, one of its important and strategic markets, Sabic also underscores its belief that cross-regional collaboration with customers and partners lays the foundation for sustainable economic growth in this changing world. In 2024, Sabic started construction of a 44.8-billion-yuan world-scale petrochemical complex and signed a potential investment agreement to build an engineering thermoplastics compounding plant in Fujian, China. Delivering his keynote address, Abdulrahman Al Fageeh, Sabic CEO and member of the BFA Board of Directors, said: "Companies that embrace innovation and strengthen collaboration can transform the challenges of the changing world into the opportunities of sustainable economic growth." Al Fageeh emphasised the significance of cross-regional and cross-value chain partnerships in scaling up innovative solutions with lasting impact. As the sole representative of the global business community, he also highlighted the chemical industry's unique role in supporting global economic growth. During the BFA Annual Conference 2025, Al-Fageeh also joined business representatives, organization leaders, and industry experts in a high-level roundtable on Promoting Energy Transition in Asia.
