On the same day it announced a plan to realign product sales and marketing with Saudi Aramco, the Saudi Basic Industries Corp (SABIC) reported first-quarter net profit of around SAR 4.8 billion ($1.2 billion).
Meanwhile, the sales and marketing for a number of Aramco petrochemicals and polymers products will move to SABIC, and the offtake and resale responsibility of a number of SABIC products will transfer to Aramco Trading Company (ATC) under a plan revealed on Thursday.
The effect of these changes, planned to be implemented on a phased basis during 2021 will focus SABIC on petrochemicals products and ATC on fuel product, said a joint statement.
“The transfers reflect our shared commitment to capitalize on the complementary nature of Aramco and SABIC’s respective product portfolios as we strive to create added value for our customers and shareholders,” said Ibrahim Al-Buainain, Aramco Trading Company President and CEO.
It represents the latest move to integrate the strategies of both companies following Aramco’s acquisition of a 70% stake in SABIC in June 2020.
Aramco and SABIC will continue to review options for further global marketing and sales transfers across product-producing companies within the Aramco group portfolio, they said.
The changes will drive further operational efficiencies, strengthen the brands of both companies and their combined products and services offering, and help to maintain competitiveness. Customers will benefit from improved product range and availability, ordering and points of sale, supply chain, shipping reliability, and after-market services and solutions.
“By leveraging and optimizing our complementary combined product portfolios we will create a one-stop shop for the benefit of our customers globally, including in strategically important geographies, especially across Asia,” said SABIC Executive Vice President Abdulrahman Al-Fageeh.
“These marketing and sales transfers and operational changes are intended to put us closer to market, driving greater agility and flexibility to deliver added value to customers and power their ambition,” he added.