Shedding Light on SABIC’s Revenues Main Sources

Kingdom’s contribution to SABIC’s revenues in the 4th quarter of 2021 decreased to 16.70%, compared to 16.89% in the 3rd quarter of the same year, and compared to 16.72% in the 4th quarter of 2020.

The company’s revenue from China also decreased to 16.33%, compared to 22.13 % in the 3rd quarter, and 19.63% in the corresponding quarter, in 2020.

But the situation in each of the countries of Asia and Europe was different, despite the decline in the percentage of the company’s revenues from Asian countries to 22.24% in the 4th quarter, compared to 23.46% in the 3rd quarter, it was high compared to the corresponding quarter (21.89% in 2020), while, in Europe, the percentage of revenues to total revenues increased (21.24%) compared to the 3rd quarter (20.88%), however, it decreased compared to the corresponding quarter 21.84%.

As for “SABIC” revenues from the two Americas, it increased to 9.55%, compared to 8.89% in the 3rd quarter of 2021 and 8.61% in the 4th quarter of 2020, while the percentage achieved in the 4th quarter of 2021 was the highest since the 4th quarter of 2018, when it had reached 9.93%.

As for SABIC’s revenues from other regions, it increased to 13.4%, compared to 7.75% in the 3rd quarter and 11.30% in the 4th quarter of 2020.

SABIC revenues data depend on the locations of customers, while the “other” items include sales made by foreign shareholder of its subsidiaries, while the group does not have any detailed geographic data on sales to the final consumer.

Maaal, the leading Saudi online daily had previously forecast SABIC achieving revenues jump, in 2021 and remarkably, in its 4th quarter, as its annual revenues amounted to SR174.92 billion, a growth rate of 49.6% compared to 2020 of SR116.95 billion, and the revenues achieved in 2021 are the highest for the company since 2014 at SR188.98 billion.

At the level of the 4th quarter, the company’s revenues amounted to SR51.27 billion, which is the highest quarterly revenue for the company, in its history.

The Year 2022 is expected to be an extension of what the company was in 2021, with good profits, SABIC CEO Youssef Al-Bunyan had previously envisioned.

Adding that this comes with the support of an expected increase, in sales, helping in commissioning new factories for production, such as a factory in Jubail, another factory with ExxonMobil in the United States, in addition to a factory in China, as well as the continuation of more than two million tons through New Jersey, in partnership with Aramco.

Al-Benyan noted that this comes despite their expectations that SABIC’s revenues will face some pressures, due to fluctuations in energy prices, which may reflected in the cost of feedstock, as well as challenges in supply chains, during the company’s press conference, regarding the results of the 4th quarter and annual results 2021.

Over the course of 2021, SABIC achieved strong financial performance, supported by improved market conditions and focus on capital discipline, he pointed out, stressing the company’s commitment to sustainability through its strategy to achieve carbon neutrality by 2050.

It has also achieved a strong performance in the 4th quarter of 2021, driven by operational flexibility and higher prices for most major products, that led to higher earnings before interest, tax, depreciation and amortization, during the 4th quarter of 2021.