EPCA '07: SABIC Europe expects record 2007

30 September 2007 15:30  [Source: ICIS news]

LONDON (ICIS news)--SABIC Europe will produce record financial results in 2007 and the outlook for 2008 is positive with sales topping €8bn, chief executive Boy Litjens said on Sunday.

Speaking on the sidelines of the 2007 European Petrochemical Association annual meeting he said, however, that 2009, 2010 and 2011 might be “difficult years” for the industry.

He did not expect European cracker operating rates to fall but said the pressure would be on olefins and derivatives prices.

“Our financial performance and that of most petrochemicals players is excellent this near. We will definitively report the best results ever,” Litjens said.

In 2006, SABIC Europe posted earnings before interest, tax, depreciation and amortisation (EBITDA) of €450m on sales of €6bn.

Its sales in 2007 have been boosted by the acquisition of Huntsman’s European petrochemical assets and their inclusion since 1 January.

SABIC Europe’s sales in 2007 will be greater than €8bn, Litjens said with the new assets in the UK, including the 865,000 tonne/year Wilton cracker and derivatives businesses contributing to EBITDA. Full year 2007 profits will be higher on a like for like basis, he said.

“I don’t see any major reason to suggest that demand will go down in 2008,” Litjens said. Some capacity will come on-stream in the Middle East but not until the fourth quarter, he added.

“There were some concerns that the market was past its peak,” Litjens said. “And I am realistic enough to see that somewhere in 2008 and 2009 the economy is going to turn down,” he added.

Yet, the SABIC Europe CEO said, 2008 looks “very fair” for economic development.

By: Nigel Davis
+44 20 8652 3214

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