Saudi Arabia’s petrochemicals is still well represented, but many companies are ranked lower than in the 2012 MEED 100.

Saudi Basic Industries Corporation is at the top of the list yet again in 2013 with market capitalisation of almost $73.4bn, a full $46bn more than Al-Rahji Bank and Investment Company, the second-ranked company.

However, 2012 was not one of Sabic’s best years. It posted net income of $6.6bn compared to $7.8bn in 2011, a decrease of 15.4 per cent. The company said the dip was due to “higher cost of sales and lower prices for certain products, despite higher sales and production volumes and reduction in financial charges”.

The prevailing market conditions have caused a dip, but with a number of high-level projects under execution, the Saudi Arabian chemicals giant is confident it can rally in 2013.

Most of the region’s energy companies are state-owned.  Sabic is the only one in the top 10, with the Saudi Arabian Fertilisers Company (SAFCO) being the next best placed at 11.  

Safco enjoys the highest profit margins of any fertiliser producer in the world, estimated to be 77 per cent by the UK’s RBS. The company’s 2012 successes have been built on strong global urea prices and low feedstock costs.

Further down the list the kingdom’s petrochemicals industry is well represented with four companies being listed. However, three of these have dropped in their ranking after having to deal with the same pricing and costs issues as Sabic. 

Yanbu National Petrochemicals Company, however, climbed three places to number 26. This is despite posting net income of $652m in 2012, a 22.9 per cent decrease from 2011.

Saudi Kayan Petrochemical Company climbed from 29 in 2011 to 28 in 2012, but has slipped 20 places to 48 in 2013.

Rabigh Refining & Petrochemical Company dropped 18 places despite posting an increase of 622 per cent increase in net profits from $18m to $130m.

Polypropylene producer National Petrochemical Company suffered the largest drop, 23 places, from 67 to 90.

Qatar’s domestic fuel distribution company, Qatar Fuel, jumped 13 places to 50 on the back of strong domestic consumption of refined goods and other fuel types.