Saudi Arabia’s exchange-listed petrochemicals companies notched up record collective net profits of $7.7bn in the first nine months of 2018. Though crude prices are the key determinant of their profit margin given the indexing of Saudi chemicals prices to crude, profits are now above those seen when crude was over $100/B (see charts).
The 13 out of 14 companies reporting in recent weeks – small firm Alujain is again expected to report late – disclosed total net profits of $7.66bn for the first three quarters of 2018, up 33% on the $5.74bn for the same period in 2017 and up 2.7% on the $7.46bn previous periodic high in 2014. Yet quarterly earnings fell by 12% from $2.89bn in 2Q 2018 to $2.54bn in 3Q 2018, despite the higher oil price. (CONTINUED - 756 WORDS)
