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SABIC

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SABIC
SABIC
Native name
الشركة السعودية للصناعات الأساسية (سابك)
Company typePublic
Tadawul:2010
ISINSA0007879121Edit this on Wikidata
IndustryChemicals
FoundedSeptember 1976;47 years ago(1976-09)
Headquarters
Riyadh
,
Saudi Arabia
Key people
  • Khalid Hashim Al-Dabbagh (Chairman)
  • Abdulrahman Al-Fageeh (CEO)
ProductsChemicalsand intermediates, industrialpolymersandfertilizers
RevenueIncreaseUS$52.92 billion[1](2022)
DecreaseUS$6.37 billion[1](2022)
DecreaseUS$4.41 billion[1](2022)
Total assetsDecreaseUS$83.49 billion[1](2022)
Total equityIncreaseUS$49.61 billion[1](2022)
OwnerSaudi Aramco(70%)
Number of employees
32,721 (2019)
Websitewww.sabic.com

Saudi Basic Industries Corporation(Arabic:الشركة السعودية للصناعات الأساسية), known asSABIC(Arabic:سابك), is a Saudi chemical manufacturing company. 70% of SABIC's shares are owned bySaudi Aramco.[2][3]It is active in petrochemicals, chemicals, industrial polymers and fertilizers.[4]It is the second largestpublic companyin theMiddle EastandSaudi Arabiaas listed inTadawul.

In 2017, SABIC was ranked fourth in the world among chemical companies byFortune Global 500.[5]By the end of 2018 SABIC was the world's 281st-largest corporation.[6]In 2014, the company had sales revenues of $50.4 billion, profits of $6.7 billion and assets standing at $90.4 billion.[7]It also has been recognized as the world's second most valuable brand in the chemicals industry by Brand Finance in 2021.[8]

SABIC European Head Office inSittard,the Netherlands

History[edit]

SABIC was founded in 1976 by royal decree to convert oil by-products into useful chemicals, polymers, and fertilizers.[9]The first chairman of the company wasGhazi Abdul Rahman Al Gosaibi,the Minister of Industry and Electricity, and the first CEO wasAbdul Aziz Bin Abdullah Al Zamil.[9]

SABIC's founding transformed the small fishing villages ofJubailon thePersian GulfandYanbuon theRed Seainto modern industrial cities. Production in 1985 was 6.5 million tonnes; five years later production rose to 13 million tonnes and by 2003 production had risen to 42 million tonnes and by 2012 to over 60 million tonnes. SABIC employs more than 40,000 people globally and has 60 manufacturing and compounding plants in over 40 countries.[10]

SABIC's manufacturing network in Saudi Arabia consists of 18 affiliates. Most of these are based in the Al-Jubail Industrial City on the coast of the Persian Gulf. Two are located inYanbuIndustrial City on the Red Sea and one is in the eastern city ofDammam.SABIC is also partners in three regional ventures based inBahrain.SABIC is a market leader in key products such as ethylene, ethylene glycol, methanol, MTBE and polyethylene.[11]

Operations[edit]

SABIC underwent a business restructuring in October 2015, that saw the absorption of the commodity chemicals produced under the Innovative Plastics SBU into the Chemicals and Polymers SBUs. Along with this, the Specialties SBU was created to house the remainder of the Innovative Plastics products that did not fall under the commodity umbrella and the Innovative Plastics SBU would cease to exist by January 1, 2016.[12]This change follows the reallocation of the Performance Chemicals portfolio into the Chemicals SBU.[13][14]

In July 2002, SABIC commenced operations in Europe after the $2 billion acquisition of the petrochemicals business of Dutch groupDSM.[15]SABIC Europe, SABIC's European subsidiary, produces over 2 million tonnes of polymers and over 5 million tonnes of basic chemicals. It employs over 3,000 people and has two major manufacturing locations inGeleenin the Netherlands andGelsenkirchenin Germany.[11]After forming SABIC Europe, SABIC became the 11th-largest petrochemicals company in the world. The purchase of DSM signified SABIC's intent to expand and become a true global company.

In 2004, the value of SABIC shares, listed on theSaudi Stock Exchange(Tadawul), increased 170% while its net profits increased by 112% from 2003 to 2004.[16]

In 2005, SABIC was the Middle East's largest (in terms of market capitalization) and most profitable publicly listed non-oil company, the world's 11th-largest petrochemical company, ranked 331 on theFortune Global500 for 2005, the second-largest producer of ethylene glycol and methanol in the world, the third-largest producer of polyethylene and overall the fourth-largest producer of polypropylene andpolyolefin.Standard & Poor'sandFitch Ratingsclaimed SABIC to be the world's largest producer of polymers and the Persian Gulf region's largest steel producer for 2005; they assigned SABIC an "A"corporate credit rating.That same year, Bloomberg ranked SABIC as the 13th-largest company in the world in terms of market capitalization (at the beginning of 2005 it exceededر.س375 billion, the equivalent ofUS$100 billion) and the second-largest by market value outside the US and UK.[16]

In June 2006, SABIC established the "SABIC Sukuk Company" to issue Islamic bonds (Sukuk) that are estimated to range betweenر.س1 billion (US$266.67 million) andر.س3 billion (US$800 million).

In January 2007, SABIC Europe took overHuntsman Corporationplants in the UK. Headquartered in Sittard, Netherlands, SABIC Europe has a European wide network of sales offices and logistic hubs, as well as three petrochemical production sites in Europe: Geleen (Netherlands), Teesside (United Kingdom), and Gelsenkirchen (Germany).[17]

In 2008, SABIC Europe produced 7.3 million metric tons of petrochemicals, mainly for the European market.

On May 21, 2007, SABIC acquiredGeneral Electric's Plastics division, in aUS$11.6 billion cash deal, includingUS$8.7 billion of its liabilities,[18]and launched SABIC Innovative Plastics.[19]In that year, the company ranked 145 (previous rank: 301) in theForbes Global 2000list.[20]As of 2014, SABIC Innovative Plastics[21]is a multibillion-dollar company with operations in more than 25 countries and over 9,500 employees worldwide.[17]

In July 2009, SABIC received approval from the Chinese government to build aUS$3 billion petrochemical complex in China, in order to gain a foothold in the world's fastest-growing chemicals market.[22]

In January 2018, SABIC announced that it had acquired a 24.99% stake inClariant,the Swiss specialty chemical manufacturer. The stake was acquired from activist investorWhite Tale,and at Clariant's prevailing market-capitalisation would have been valued in the region of $2.4bn. The actual transaction price was undisclosed. SABIC CEO Yousef Al-Benyan had previously stated, in November 2017, that the company was looking to spend $3bn-$10bn on acquisitions over the next 10 years.

On March 27, 2019, SABIC announced that state-owned energy companySaudi Aramcosigned a share purchase agreement to acquire a 70% majority stake in SABIC from thePublic Investment Fundof Saudi Arabia in a private transaction worth $69.1 billion.[23]The transaction was completed in June 2020.[24]

Production and major expansions[edit]

Expansion operations and investments supposedly amounted toUS$20 billion in 2007 andUS$70 billion until 2020. The overall total production in 1985 was 6.3 million metric tons; by the end of 2008 it had reached 56 million metric tons. SABIC supposedly can produce over 135 million metric tons per year.[25]

Financial performance[edit]

Net profits of SABIC in 2008 touchedر.س22 billion (US$5.86 billion), while total assets stood atر.س272 billion (US$72.5 billion) at the end of 2008 and the value of current assets at the end of 2008 stood atر.س95 billion (US$25 billion).[26]The Fortune 500 ranking set SABIC revenues as of $40.2 billion.[when?]

SABIC reported preliminary consolidated financial results for the period ended September 30, 2010. Net income for the third quarter of 2010 wasر.س5.33 billion, compared to net income ofر.س3.65 billion in the same period the previous year, representing an increase of 46 percent and compared toر.س5.02 billion for the previous quarter, a rise of 6 percent.[citation needed]

According to the 2019 Fortune Global 500 list, SABIC reported $45.1 billion in revenues and $5.7 billion in profits for the 2018-2019FY,ranking it in fourth place among chemical companies and #252 in the list.[27]

Subsidiaries[28][edit]

  • Ibn Sina[29]
  • Saudi-European Petrochemical Company (Ibn Zahr)
  • Saudi Carbon Fiber Company
  • Saudi Petrochemical Company (Sadaf)
  • National Industrial Gases Co (Gas)
  • Petrokemya
  • Kemya
  • Saudi Methanol Co (Ar-Razi)
  • Al-Bayroni
  • Yanpet
  • Jingga Bin Rasyid Oil Company
  • Arabian Industrial Fibers Company (Ibn Rushd)
  • Sharq
  • Safco
  • Jubail United Petrochemical Company (United)
  • Yansab
  • Sabtank
  • Saudi Kayan
  • Scientific Design
  • Samac

Products[edit]

See also[edit]

References[edit]

  1. ^abcdehttps://www.sabic.com/en/reports/annual-2022
  2. ^Wilson, Tom; Al-Atrush, Samer (2022-03-20)."Saudi Aramco net revenues double to $110bn on surging oil demand".Financial Times.Archivedfrom the original on 2022-12-11.Retrieved2022-03-21.
  3. ^Forbes: Global 2000 Leading CompaniesForbes Middle East
  4. ^"SAUDI BASIC INDUSTRIES CORP (SABIC:Saudi Arabia): Stock Quote & Company Profile - Businessweek".investing.businessweek.com.Retrieved11 May2018.
  5. ^[1]Process Worldwide
  6. ^"SABIC Financials and News | Global 500".fortune.com.2017-09-16. Archived fromthe originalon 2017-09-16.Retrieved2024-06-12.
  7. ^Murphy, Andrea; Tucker, Hank (June 8, 2023)."The Global 2000 2023".Forbes.Retrieved2024-06-12.
  8. ^"Brand Spotlight: SABIC | Brand Finance".Retrieved2022-04-05.
  9. ^abHertog, Steffen (2008)."Petromin: the slow death of statist oil development in Saudi Arabia"(PDF).Business History.50(5): 645–667.doi:10.1080/00076790802246087.S2CID154116939.Retrieved16 September2013.
  10. ^Arabnews.com
  11. ^abSABIC.com
  12. ^"SABIC announces global operational transformation to better meet customer needs | News | News & Media | SABIC".www.sabic.com.Retrieved2015-10-08.
  13. ^"Offshore Technology | Oil and Gas News and Market Analysis - Oil and gas news and in-depth feature articles on the biggest offshore projects, exploration and decommissioning technology and innovation, as well as data on the latest oil price trends".
  14. ^"Sabic dissolving Innovative Plastics unit, leaving Pittsfield, Mass., HQ | Plastics News".www.plasticsnews.com.8 October 2015.Retrieved2015-10-08.
  15. ^"Saudi Chemical Maker in Dutch Acquisition".New York Times.April 4, 2002.Retrieved24 March2020.
  16. ^abZawya.com
  17. ^abSABIC.com
  18. ^The New York Times22 May 2007
  19. ^SABIC.com
  20. ^Forbes Global 2000, 2008
  21. ^SABIC-IP.com
  22. ^Karam, Souhail (2011)."Saudi SABIC says China govt approved Sinopec JV | Reuters".uk.reuters.com.Retrieved19 August2011.
  23. ^"Saudi Aramco Agrees to Buy 70% Stake in SABIC from Kingdom's Public Investment Fund | SUSTG.com – News, Analysis, and Features on all things Saudi Arabia".Retrieved2019-03-28.
  24. ^"Saudi Aramco extends payment plan as it closes $69bn Sabic deal".Financial Times.Archivedfrom the original on 2022-12-11.Retrieved2020-06-18.
  25. ^SABIC.com
  26. ^SABIC.com
  27. ^"SABIC".
  28. ^"SABIC - Affiliates".www.sabic.com.Retrieved2023-04-18.
  29. ^"IBN SINA signs engineering plastic project contract".Arab News.11 July 2013.
  30. ^McKeen, L.W. (2016).Fatigue and Tribological Properties of Plastics and Elastomers.Plastics Design Library. Elsevier Science.ISBN978-0-323-44205-3.Retrieved2024-04-12.

External links[edit]

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