Led by SABIC, petrochemical companies announce financial impact of feedstock price hike

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Riyadh - Mubasher: Petrochemical companies announced the financial impact after receiving a notification from Saudi Aramco to increase feedstock prices, effective from the beginning of January 2025 .

According to the companies’ disclosures on “Tadawul” today, Thursday, the companies expected the cost of sales to increase by varying percentages starting from the first quarter of the fiscal year 2025 AD .

Saudi Basic Industries Corporation (SABIC) announced that its subsidiaries in the Kingdom of Saudi Arabia received a notice from Aramco to increase feedstock prices. The financial impact of this notice is expected to be an increase of approximately 1% of the total cost of sales .

The company confirmed that it will continue to work on enhancing the efficiency of its business and developing it in a responsible and sustainable manner, and investing in innovation and development of production technologies and products, in addition to maximizing the benefit from the advantages of the competitive infrastructure available in the Kingdom to achieve its strategic goals .

For its part, the Saudi Industrial Investment Group announced that its subsidiaries received a notification from Saudi Aramco to amend the prices of some feedstock/fuel products. The financial impact of this increase is expected to be 1% of the sales costs of jointly managed companies, according to the latest audited annual financial statements .

Sahara International Petrochemical Company (Sipchem International) also announced that it received a notification from Saudi Aramco to increase some feedstock prices. The financial impact of this increase is expected to be approximately 2% of the total cost of sales according to the company’s latest audited annual financial statements .

For its part, the National Industrialization Company announced that it received a notification from Saudi Aramco, amending the prices of some feedstock and fuel products, which is expected to result in an increase in the total cost of sales for the company’s subsidiaries and joint ventures by about 1.85% according to the company’s latest audited annual financial statements .

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