SABIC 'well placed' to finance US venture with ExxonMobil: Al-Benyan

Saudi Basic Industries Corp (SABIC) is well-placed to finance its US-based venture with ExxonMobil at the lowest cost, backed by its solid financial position and strong credit rating, recently affirmed by Fitch Ratings at “A+”, CEO Yousef Al-Benyan told Argaam on Sunday.

The petrochemical giant and its partners are still studying the best financing options for the new facility.

Commenting on Saudi Aramco’s interest in acquiring the Public Investment Fund’s (PIF) stake in SABIC, Al-Benyan said, “it’s only a matter between an investor and SABIC’s shareholder.”

Al-Benyan added that SABIC’s improved profitability in Q2 2018 was bolstered by its keenness on operational reliability, as its plants boosted production by 1.5 million tons in H1 2018.

In addition, a 7 percent quarter-on-quarter (QoQ) decline in operating and administrative expenses during Q2 also reflected positively on SABIC’s performance, Al-Benyan said, expecting total output to stand at almost 3 million tons by year-end.

Meanwhile, SABIC’s poly methyl methacrylate (PMMA) project, which began commercial production in H1 2018, had no significant impact on the second-quarter results.

SABIC reported a net profit of SAR 6.7 billion in Q2 2018, up 81 percent year-on-year (YoY).

The petrochemical producer will continue to focus on benefiting from the turnaround plans, which started in 2015, to reduce expenses and enhance shareholders’ equity, he said.

Ibn Rushd recorded net profit of over SAR 117 million in the first half of this year, thanks to the successful turnaround which took place over 2016 and 2017, Al-Benyan added, hoping that the company will see improved operations going forward.