Yansab's first full quarter generates net profit of $134m

14 July 2010 12:23  [Source: ICIS news]

LONDON (ICIS news)--Saudi Arabia’s Yanbu National Petrochemical Company (Yansab) has reported a net profit of Saudi riyal (SR) 502.4m ($134.0m) for the second quarter, its first full quarter of commercial operation, the company said on Wednesday.

The result compares with a net loss of SR6.7m in the second quarter of 2009 and a net profit of SR259.4m in the first quarter of 2010.

Operating profits for the quarter were SR596.0m, it said

The net results were 9% below consensus and 13% below its forecast, Credit Suisse said in a note to clients.

“We had always maintained that the market was attributing optimistic margins for Yansab, without discounting adequately for the mixed feed nature of the crackers and that there was significant downside risk to our optimistic scenario,” Credit Suisse said.  The first full quarter of plant operations provided visibility to the earnings potential of the company, it added.

Operating profits for the quarter were 25% below its forecast.

Commercial operations commenced on 1 March 2010, Yansab said. The Yansab cracker started up in September 2009.

Yansab is a joint-stock company 51% owned by SABIC. It operates a 1.3m tonne/year cracker in Yanbu, Saudi Arabia, and downstream ethylene oxide, ethylene glycol, polyethylene, polypropylene and aromatics units.

($1 = SR3.75)

Read John Richardson and Malini Hariharan’s Asian Chemical Connections blog
Please visit the complete ICIS plants and projects database
To discuss issues facing the chemical industry go to ICIS connect

By: Nigel Davis
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index