Sumitomo, Aramco to joint-market Petro Rabigh products

01 April 2014 12:47 Source:ICIS News

DUBAI (ICIS)--Saudi Arabia-headquartered producer Petro Rabigh said on Tuesday that its parent companies are to joint-market its products equally, rather than dividing marketing duties by product line as they had previously.

Saudi Aramco and Sumitomo Chemical are to joint-market Petro Rabigh’s propylene, polyethylene and ethylene glycol products internationally from 1 April 2014. Formerly, Saudi Aramco handled marketing for Petro Rabigh’s refined products, and Sumitomo marketed its chemicals products.

Petro Rabigh will market its petrochemicals products in the domestic market, the company added.

“The founding shareholders have started marketing of petrochemical products evenly from today at the international market while Petro Rabigh holds the marketing of petrochemical products in the Saudi market,” the company said in a filing to Saudi stock exchange.

Petro Rabigh has annual output capacity of 18 million tonnes of refined products and 2.4 million tonnes of petrochemicals.

Last year parent companies of Petro Rabigh also agreed to cut international marketing fees by a third to boost the company revenues by almost one billion riyals ($267 million).

The commercial agreement came after the company’s earnings hit hard last year by maintenance at some of its facilities. For the whole of 2013, Petro Rabigh’s net profit declined 26.5% to SR359.2m. It swung into an operating loss of SR313m last year, compared with a SR654.0m profit made in 2012.

 

By Aamir Ashraf