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SABIC CEO to Asharq Al-Awsat: We Expect Improvement in Demand for Petrochemicals in 2nd Half of 2023

SABIC acting CEO Abdulrahman Al-Fageeh speaks during a press conference in Riyadh. (Asharq Al-Awsat)
SABIC acting CEO Abdulrahman Al-Fageeh speaks during a press conference in Riyadh. (Asharq Al-Awsat)
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SABIC CEO to Asharq Al-Awsat: We Expect Improvement in Demand for Petrochemicals in 2nd Half of 2023

SABIC acting CEO Abdulrahman Al-Fageeh speaks during a press conference in Riyadh. (Asharq Al-Awsat)
SABIC acting CEO Abdulrahman Al-Fageeh speaks during a press conference in Riyadh. (Asharq Al-Awsat)

Energy prices caused the profit margins of the Saudi Basic Industries Corporation (SABIC) - the world’s largest petrochemical producer - to decline by 28 percent in 2022.

SABIC acting CEO Abdulrahman Al-Fageeh told Asharq Al-Awsat that the company was optimistic about the quality and reliability of the factories, expecting that the second half of 2023 would witness an improvement in demand for petrochemical products.

He stressed at the same time that feedstock prices that fall under energy, put pressure on profit margins.

Speaking during a press conference on Tuesday to announce SABIC financial results, Al-Fageeh noted that the company maintained its strong performance over the past year, despite the difficult conditions in the global markets.

He added that sales continued to grow over last year by 9 percent, thanks to growth projects, improved plant operation performance, inventory optimization and cooperation with Saudi Aramco.

“SABIC 2022 results remain strong despite challenging market conditions. Our sales volumes continue to grow, exceeding the previous year’s sales by 9 percent and driven by growth projects, improved reliability, inventory optimization and synergies with Saudi Aramco,” said Al-Fageeh.

In a statement, SABIC announced its financial results for the fourth quarter of 2022, saying that revenues amounted to 42.9 billion riyals ($11.4 billion), a decrease of 8 percent compared to the previous quarter. Net income fell 84 percent to SR290 million.

SABIC maintained its leadership in the field of sustainable solutions throughout 2022, leading and collaborating on many milestones in its journey towards carbon neutrality.

At the beginning of 2022, the company introduced the BLUEHERO initiative, an expanding ecosystem of materials, solutions, expertise and programs aimed to help accelerate the world’s energy transition to electric power and support meeting global goals on climate change.

SABIC partnered with BASF and Linde to build the world’s first pilot plant for large-scale electric-heated steam cracking furnaces.

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French Finance Minister Says Budget Can Still Be Improved

French Minister for the Economy, Finance and Industry Antoine Armand arrives for a dinner in honor of the President of Nigeria, at the Elysee palace in Paris, on November 28, 2024. (AFP)
French Minister for the Economy, Finance and Industry Antoine Armand arrives for a dinner in honor of the President of Nigeria, at the Elysee palace in Paris, on November 28, 2024. (AFP)
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French Finance Minister Says Budget Can Still Be Improved

French Minister for the Economy, Finance and Industry Antoine Armand arrives for a dinner in honor of the President of Nigeria, at the Elysee palace in Paris, on November 28, 2024. (AFP)
French Minister for the Economy, Finance and Industry Antoine Armand arrives for a dinner in honor of the President of Nigeria, at the Elysee palace in Paris, on November 28, 2024. (AFP)

French Finance Minister Antoine Armand said on Saturday that the 2025 budget could still be improved, but stopped short of giving ground in a standoff with the far right over new concessions.

Ratings agency Standard & Poor's gave Prime Minister Michel Barnier's fragile minority government a rare reprieve late on Friday leaving its rating steady although France's budget deficit has spiraled out of control this year.

Any relief is likely to prove short-lived with both the left and far right threatening to bring Barnier's government down over the budget, which seeks to squeeze 60 billion euros ($64 billion) in savings through tax hikes and spending cuts.

Marine Le Pen's far right National Rally (RN), whose tacit support Barnier needs to survive a likely no confidence motion, has given him until Monday to accede to her demands to make further changes to the budget.

"This government, under his authority, is willing to listen, to have a dialog, to be respectful, to improve this budget," Armand told journalists.

Asked about the showdown with Le Pen, he said: "The only ultimatum really facing the French is that our country gets a budget."

On Thursday, Barnier already dropped plans to raise electricity taxes in the budget as the RN had demanded, but it is keeping pressure on the government to scrap plans to postpone an increase in some pensions to save money.

RN lawmaker Jean-Philippe Tanguy told Les Echos newspaper on Saturday if the bill is not modified the party would back a no-confidence motion.

The test could come as soon as Monday if his government has to use an aggressive constitutional measure to ram the social security financing legislation through parliament, which will trigger a no-confidence motion.