RIYADH, July 20 The global outlook for
petrochemical demand over the next three years is positive and
there is room for prices to rise, the chief executive of Saudi
Basic Industries Corp (SABIC) said on Sunday.
Mohamed al-Mady was addressing a news conference after
SABIC, one of the world's largest petrochemicals groups, earlier
reported a 7 percent year-on-year increase in second-quarter net
income, matching analysts' predictions.
Forecasts suggest shale gas, a potential feedstock for
petrochemicals, will only be produced in large quantities from
the United States in 2018, leaving room for improvement in
petrochemical prices before then, he said.
For this year, Mady predicted the business outlook would
remain similar to 2013, with petchrochemical product prices
probably staying stable.
He added that Africa was a very promising market for SABIC
and the company was focusing on opening distribution centers in
a number of African countries, especially for fertilisers and
Chief financial officer Mutlaq Morished told the news
conference that SABIC's sales in the second quarter climbed to
48.15 billion riyals ($12.84 billion) from 44.99 billion riyals
a year earlier.
(Reporting by Marwa Rashad; Writing by Andrew Torchia)