Saudi Basic Industries SJSC : SABIC reports consolidated financial results for the year ended December 31, 2016

19 Jan 2017

SABIC reported today consolidated financial results for the quarter and year ended December 31, 2016. Net profit for the year was SR 17.91 billion as compared to SR 18.77 billion for 2015, a decrease of 4.58 percent. Net profit for the fourth quarter amounted to SR 4.55 billion compared to SR 3.08 billion for the same quarter in 2015, an increase of 47.73 percent, and compared to net profit of SR 5.22 billion for the preceding quarter, a decrease of 12.84 percent.

Operating profit for the year was SR 26.88 billion as compared with SR 28.52 billion in 2015, a decrease of 5.75 percent. Fourth quarter operating profit amounted to SR 7.29 billion, as compared to SR 4.36 billion last year, an increase of 67.2 percent, and compared to operating profit of SR 7.64 billion for the preceding quarter, a decrease of 4.58 percent.

Gross sales/revenues for the current quarter is SR 34.03 billion compared to SR 34.16 billion for the similar quarter last year with a decrease of 0.4 percent. Gross sales/revenues for the period is SR 132.98 billion compared to SR 148.09 billion for the similar period last year with a decrease of 10 percent. Shareholders equity (Excluding Non-Controlling interests) at the end of the period is SR 163.04 billion compared to SR 161.92 billion for the similar period last year with an increase of 0.7 percent. The audited financials were used for the comparative period of last year and non-audited financials for Q4 2015.

In releasing the 2016 financial data, SABIC Vice Chairman and CEO Yousef Al-Benyan said, 'SABIC has performed admirably this year in the face of unusual market conditions and has the financial strength and robust strategy to take advantage of opportunities that emerge during economic uncertainty. SABIC is achieving sustainable growth, including expansion of capacity at existing facilities, and investments in new industrial facilities around the world.'

Al-Benyan said, 'We recognize the efforts and dedication of our Board, led by HH Prince Saud bin Abdullah bin Thenayan Al-Saud, the company's management group and employees and credit them for increasing production and sales quantities year-on-year even as margins came under pressure. This is very encouraging because every incremental increase in global demand brings an almost immediate improvement in profitability.'

He also noted that the company's cost structure continues to be an advantage. 'The transformation of SABIC's structure to provide increased business focus and customer intimacy will offer further cost advantages as the company leverages its strategic planning, supply chain management, and functional best practices across the global enterprise to become competitive in all that it does,' he said.

SABIC's global business is expanding due to envisaged major new joint projects with leading companies, such as Saudi Aramco in Saudi Arabia, ExxonMobil in the USA, and Shenhua Ningxia Coal Industry Group in China. All these efforts are aimed at achieving SABIC's growth strategy, continuing to serve our customers closely, and sharing advanced technologies with these leading partners.

Today, SABIC has a more effective supply chain and is working on making further improvements in this field. At the same time, we continue to succeed in preserving the environment, health, safety and security at all our sites. Our milestone of completing 200 million man-hours without recording any lost time injuries testifies to these achievements. SABIC applies the latest technologies in all its operations and works on localizing these technologies, and providing innovative solutions for sustainable future.

SABIC continues focusing on the development of human resources to maintain its advanced position among the best employers around the globe. This is in parallel with our efforts to attract talented people who can make a difference to our business, both at local and global levels. SABIC continues to implement similar programs that are an important part of its 2025 strategy.

'SABIC is committed to supporting the vision of the Kingdom's wise leadership, helping the country to be a successful global leader by playing a pivotal role as a link between oil and industry, being right in the middle of the value chain,' Al-Benyan said.

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