"We see prices being stabilised," al-Morished said at a press conference in Riyadh. "It s difficult to predict because it s related to what s happening with growth."
Sabic, as the world s biggest petrochemicals maker is known, said on Sunday that second-quarter profit almost tripled on higher prices and as demand for fertilisers and plastics recovered in a strengthening global economy. Net income surged to 5bn riyals ($1.34bn) from 1.81bn riyals in the year-earlier period, the Riyadh-based company said.
Second-quarter sales rose 4% from the first three months, al-Morished said yesterday, without giving a figure. The company reported revenue of 34bn riyals in the first quarter, according to company data, indicating sales in the last three months exceeded 35.4bn riyals. Production rose 6% from the first quarter, al-Morished said.
"Sabic remains a pure play on the global economy," Mohamad Hawa, a research analyst at Credit Suisse Group, wrote in a company report yesterday. "While our house view remains positive on recovery, one cannot ignore the signs of lower pace of recovery which increase the uncertainty of demand outlook." Credit Suisse maintained its "outperform" rating and share price target of 120 riyals.
The company, which in May delayed a bond sale, citing unfavourable terms, is always looking for financing, and closing any transaction depends on pricing, al-Morished said.
With 50bn riyals in cash on the balance sheet, "the company is very well capitalised," he said. "We have the luxury to wait."
Sabic has used financing from local banks to fund expansion as the company seeks to triple petrochemicals production to 130mn tonnes by 2020. Sabic signed an agreement on June 29 for a 4.5bn-riyal credit facility to finance growth in production capacity.
Growth for the petrochemicals industry will come from Asia and the US, al-Morished said. Sabic is not seeing a decline in demand from Europe, he said, as some economies there struggle to reduce public debt. "Quantities are fine," al-Morished said when asked about the impact of the European debt crisis on demand for the company s products there.
Sabic Innovative Plastics, the US unit purchased from General Electric Co for $11.6bn in 2007, contributed to the company s first-quarter loss last year as the global recession cut demand for products such as cars. The loss was the first since the fourth quarter of 2001, according to Bloomberg data.
"With the improvement in the world economy and the US economy, we are doing quite well," al-Morished said. "We have seen sales picking up, not only from Sabic Innovative, but in all the commodities. We have seen an increase in the US."
The International Monetary Fund on July 8 raised its forecast for global economic growth this year to 4.6%, which would be the fastest since 2007, from the 4.2% it predicted in April.
Sabic started commercial operations this year at its units Eastern Petrochemical Co, known as Sharq, and Yanbu National Petrochemical Co, known as Yansab. In addition, Sabic and China Petroleum & Chemical Corp (Sinopec), started producing this year at a joint-venture complex in Tianjin, China.
Sabic, as the world s biggest petrochemicals maker is known, said on Sunday that second-quarter profit almost tripled on higher prices and as demand for fertilisers and plastics recovered in a strengthening global economy. Net income surged to 5bn riyals ($1.34bn) from 1.81bn riyals in the year-earlier period, the Riyadh-based company said.
Second-quarter sales rose 4% from the first three months, al-Morished said yesterday, without giving a figure. The company reported revenue of 34bn riyals in the first quarter, according to company data, indicating sales in the last three months exceeded 35.4bn riyals. Production rose 6% from the first quarter, al-Morished said.
"Sabic remains a pure play on the global economy," Mohamad Hawa, a research analyst at Credit Suisse Group, wrote in a company report yesterday. "While our house view remains positive on recovery, one cannot ignore the signs of lower pace of recovery which increase the uncertainty of demand outlook." Credit Suisse maintained its "outperform" rating and share price target of 120 riyals.
The company, which in May delayed a bond sale, citing unfavourable terms, is always looking for financing, and closing any transaction depends on pricing, al-Morished said.
With 50bn riyals in cash on the balance sheet, "the company is very well capitalised," he said. "We have the luxury to wait."
Sabic has used financing from local banks to fund expansion as the company seeks to triple petrochemicals production to 130mn tonnes by 2020. Sabic signed an agreement on June 29 for a 4.5bn-riyal credit facility to finance growth in production capacity.
Growth for the petrochemicals industry will come from Asia and the US, al-Morished said. Sabic is not seeing a decline in demand from Europe, he said, as some economies there struggle to reduce public debt. "Quantities are fine," al-Morished said when asked about the impact of the European debt crisis on demand for the company s products there.
Sabic Innovative Plastics, the US unit purchased from General Electric Co for $11.6bn in 2007, contributed to the company s first-quarter loss last year as the global recession cut demand for products such as cars. The loss was the first since the fourth quarter of 2001, according to Bloomberg data.
"With the improvement in the world economy and the US economy, we are doing quite well," al-Morished said. "We have seen sales picking up, not only from Sabic Innovative, but in all the commodities. We have seen an increase in the US."
The International Monetary Fund on July 8 raised its forecast for global economic growth this year to 4.6%, which would be the fastest since 2007, from the 4.2% it predicted in April.
Sabic started commercial operations this year at its units Eastern Petrochemical Co, known as Sharq, and Yanbu National Petrochemical Co, known as Yansab. In addition, Sabic and China Petroleum & Chemical Corp (Sinopec), started producing this year at a joint-venture complex in Tianjin, China.
