Sabic, a global leader in diversified chemicals, has announced impressive financial results and operational achievements for the second quarter of 2024. The company's strong performance underscores its commitment to growth, sustainability, and shareholder value, it said.
FINANCIAL PERFORMANCE
Sabic reported a total net profit of SAR2.18 billion ($0.58 billion) in Q2 2024, a significant increase from SAR0.25 billion ($0.07 billion) in the previous quarter. This robust financial performance enabled the company to declare a cash dividend of SAR5.1 billion ($1.36 billion) for the first half of the year, underscoring its strong financial position and commitment to shareholder returns.
Furthermore, Sabic reported cumulative benefits of over $2 billion from synergies with Saudi Aramco, demonstrating the success of its strategic partnership and integration efforts.
ENVIRONMENT, HEALTH, SAFETY AND SECURITY (EHSS)
In addition to its impressive financial results, Sabic also made significant strides in its EHSS performance during the second quarter of 2024. Sabic CEO Abdulrahman Al-Fageeh highlighted the substantial improvement in the company's safety record, with the SHER (Safety and Health Evaluation Rating) improving from 0.47 in the same period last year to 0.18 in Q2 2024, a 62 per cent improvement.
This achievement reinforces Sabic's unwavering commitment to maintaining world-class safety standards and creating a safe working environment for its employees and stakeholders.
STRATEGIC DIVESTMENT
On May 26, 2024, SABIC completed the sale of its stake in the Saudi Iron and Steel Company (Hadeed) to the Public Investment Fund (PIF). This strategic divestment allows SABIC to focus on its core portfolio and contribute to Saudi Arabia's Vision 2030 by aligning its operations with the country's economic diversification goals.
SUSTAINABILITY RECOGNITION
Sabic's commitment to sustainability was further recognised in the second quarter of 2024, as the company received a golden medal from EcoVadis, a global leader in corporate sustainability ratings. This prestigious accolade underscores Sabic's position as a sustainability leader in the chemical industry.
Additionally, Sabic's Fujian complex was ranked among the top 10 investments in China by China Media Group, further highlighting the company's successful global expansion and recognition for its sustainable practices.
INNOVATIVE TECHNOLOGY DEVELOPMENT
In a significant milestone for the chemical industry, BASF, Sabic, and Linde inaugurated the world's first demonstration plant for large-scale electrically heated steam cracking furnaces. This innovative technology has the potential to reduce CO2 emissions of one of the most energy-intensive production processes in the chemical industry by at least 90 per cent compared to traditional methods.
The demonstration plant, which is fully integrated into BASF's existing steam crackers in Ludwigshafen, Germany, will serve as a testbed for gathering data and experiences about material behavior and processes under commercial operating conditions. This collaborative effort aims to accelerate the final development of this groundbreaking technology and bring it to industrial market maturity.
The project was granted €14.8 million by the German Federal Ministry for Economic Affairs and Climate Action under its "Decarbonisation in Industry" funding program, underscoring the importance of this innovation in driving the chemical industry's transition to a more sustainable future.
EXPANSION IN CHINA
Sabic also made significant progress in its global expansion strategy, with the groundbreaking ceremony for the Sabic Fujian Petrochemical Complex (Sino-Saudi Gulei Ethylene Complex Project) in Fujian Province, China. This joint venture between SabicC and Fujian Energy and Petrochemical Group represents a major milestone in cross-regional cooperation and Sabic's commitment to meeting the growing demand for high-end chemical products in the Chinese market.
With an estimated total investment of RMB44.8 billion ($6.4 billion), the project is scheduled to commence the preparation for commissioning and start-up from the second half of 2026, with an expected annual ethylene capacity of up to 1.8 million tons.
The groundbreaking ceremony was attended by Sabic CEO Abdulrahman Al-Fageeh, who celebrated the next chapter of this strategic partnership. The event also saw the signing of the EPC (Engineering, Procurement and Construction) Contracts and a Project Financing Loan Agreement for the SABIC Fujian Petrochemical Complex.
RECYCLING PARTNERSHIPS
Recognising the importance of advancing the circular economy, Sabic has signed a Memorandum of Understanding (MoU) with Pashupati Group, a leading Indian recycler of plastic waste and supplier of high-quality recycled products. This partnership aims to develop local recycling opportunities in India and expand SABIC's global network of qualified recycling partners.
Under the MoU, Pashupati will leverage its expertise in mechanical and chemical processing of used plastic, while SABIC will focus on the marketing and sales of recycled products. The agreement also provides for an advanced recycling project to convert used plastic into pyrolysis oil, which SABIC can then use in the production of certified circular polymers with the same performance properties as virgin plastics.
This collaboration builds on Sabic's previous partnership with Malaysia-based plastic recycling company HHI, which has resulted in the development of polymers from recovered ocean-bound and ocean plastics, used in the manufacture of new products such as the Microsoft Ocean Plastic Mouse and the Microsoft Surface Thunderbolt 4 Dock.
