DUBAI (ICIS)--The Gulf Petrochemical Council (GCC) chemical industry's overall revenues will likely see a return to growth in 2017 after registering a drop last year, the secretary general of the Gulf Petrochemicals & Chemicals Association (GPCA) said on Monday.
In 2016, the GCC industry reported $77bn in sales revenue, down 3% year on year, in line with the drop in global petrochemical prices, Abdulwahab Al-Sadoun told reporters on the sidelines of the GPCA’s 12th Annual Forum.
“Offsetting the drop in prices were the expansions in capacity,” Al-Sadoun said.
“We expect 2017 to be much better, reflected by many member companies… who registered significant profits in Q3 [third quarter] and we expect Q4 to be better,” Al-Sadoun added.
The region’s key chemicals producer SABIC reported a 11% year-on-year increase in overall sales in the third quarter, with profit up by 10.7%.
The GCC’s chemicals output grew at the fastest pace in five years in 2016, with chemical production growing 8.5% year on year to 158.8m tonnes, he said.
Capacity additions in 2016 were driven by Saudi Arabia, where production increased by 12.7% year on year to 106.7m tonnes/year, Al-Sadoun said.
The GPCA 12th Annual Forum runs on 27-29 November in Dubai, UEA.