Saudi market has witnessed tremendous declines, these declines started with a huge decline in the profits of 13 major companies out of 14 companies in the petrochemical sector during the first quarter of the year 2015, and the only one company which managed to overcome these declines the company was Spakm which survived with a profit rise of 17 percent.
The average market value of these companies during this fall declined by 6.4 percent with an estimated value of 472 billion riyals, compared to 504 billion in 2014.
Specialist say that the main reason for these declines in most of the petrochemical sector companies profits is due to the successive declines in crude Brent prices, which witnessed massive declines through the year from $ 97 a barrel to $ 47, which had huge impact on petrochemical products, and led to these declines in the petrochemical sector.
The petrochemical sector companies is considered the backbone in the production of raw materials that is used in multiple manufacturing industries, such as pharmaceuticals, fertilizers, detergents, pesticides, chemicals for water treatment, etc.
SABIC company, one of the largest Saudi companies came in the lead in market value with a 286 billion riyals, followed by SAFCO with an average value of 48 billion dollars, followed by Yansab with an estimated value of $ 27.62 billion.
The sector also witnessed diversity in the production starting with chemicals in CHEMANOL company, fertilizers and ammonia by SAFCO; and SABIC which managed to knock off the lead by participating in almost every production, rising its market value and rising over SABIC, Al-Asmeda , Al Tasnne'a, and Al Magmo'a Al Saudia.