Sabic chief executive Mohamed Al-Mady expects to see growth in the petrochemicals sector globally by the end of 2009, with signs of improvement already being witnessed in China and the United States, he told television station CNBC.

In January, Sabic’s 2008 fourth-quarter profit plunged more than 95 percent to SR311 million ($82.9 million) due to a drop in demand for petrochemical products. The company said the fall in demand for petrochemical products, particularly specialty plastics, had a strong impact on the performance of Sabic affiliates outside Saudi Arabia.
Al-Mady, however, said: “We are bullish on plastics for the future... plastic will always be with us.”    
Shuaa Capital analyst Laurent-Patrick Gally said: “The Sabic CEO’s comments seem to suggest that a gradual global recovery for the petrochemical sector may be underway.”     A potential recovery of the petrochemical sector and Sabic’s earnings, along with expectations of a continued recovery into 2010, should provide material share price appreciation for mid- to long-term investors, the analyst said.

Al-Mady retained as GPCA chairman
Meanwhile in other developments, Al-Mady was retained as  chairman of the Gulf Petrochemicals and Chemicals Association (GPCA) for another three years. The meeting also decided to retain Hamad Abdul Rahman Al Terkait, the president of Equate, as vice chairman, and Abdulaziz Alhajri, chief of Borouge, as treasurer.
Formed in March 2006, Dubai-headquartered GPCA has seen membership rise from eight founding members to 141 today.
The organisation aims to put its resources together to enhance the role of the region in international debates and policy making vis-a-vis petrochemicals, fertilisers and chemicals to facilitate regional cooperation and ensure that growth is both sustainable and socially responsible.
Dr Abdulwahab Al-Sadoun, an industry veteran, has been appointed as the new secretary general of GPCA, replacing Abdullah S Bin Zaid Al-Hagbani.