DUBAI: As part of a thorough analysis of its operations, Saudi chemicals giant SABIC announced on Wednesday that it was researching strategic alternatives for its National Industrial Gases Company, including an IPO.
An IPO of GAS would be intended to improve the group’s “financial position and the value added for shareholders,” according to a statement from SABIC, which also noted that the move was consistent with its portfolio optimisation and core business focus strategy. Low demand and high input costs have caused the chemicals sector to struggle, resulting in lower pricing and reduced profits.
One of the world’s largest petrochemical firms, SABIC, which is 70% owned by Saudi Aramco, the oil giant, reported a $323 million net loss in its first quarter in May, attributing it to rising operations and feedstock expenses.
It also said earlier this year that it will restructure some of its key assets, sell off non-essential businesses, and reduce expenses and look for new investment possibilities. It has already sold its interests in steel company Hadeed and Aluminium Bahrain, often known as Alba, to other Saudi companies with official support.
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