20 February 2013 10:46 [Source: ICIS news]
SINGAPORE (ICIS)--Petro Rabigh’s net profit last year ballooned to Saudi riyal (SR) 488.9m ($130m) from SR65.9m in 2011, backed by higher production, the Saudi Arabian producer said on Wednesday.
The company’s 2012 gross profit increased 55.4% year on year to SR1.53bn, while operating profit grew more than sixfold to SR654m, the company said in a filing to the Saudi stock exchange, also known as Tadawul.
“The reason for the increase in net profit for the current period versus the previous year is due to improved gross profit as a result of higher operation capacity in 2012 compared to 2011 when plant shutdown was experienced due to periodical test and inspection,” the company said.
For refined products, however, gross margins declined in 2012, it said.
Petro Rabigh is a joint venture between state-owned oil and gas company Saudi Aramco and Japan’s Sumitomo Chemical – each with a 37.5% stake in the Saudi petrochemical producer.
The joint venture partners are proceeding with their planned second phase of the Petro Rabigh project that would include the expansion of its 1.3m tonne/year ethane cracker and construction of a new aromatics complex.
Italian petrochemicals engineering firm Saipem has secured the engineering, procurement and construction (EPC) contracts for the Petro Rabigh phase II project, which is expected to be completed in the fourth quarter of 2015.
After the expansion, Rabigh will be able to process an additional 30m standard cubic feet of ethane/day and 3m tonnes of naphtha/year.
UK-based oil and gas service provider Petrofac was also awarded contracts related to the Petro Rabigh expansion.
($1 = SR3.75)
Additional reporting by Pearl Bantillo
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