Bid & Tender
PetroRabigh to Book Good Revenue from Expanded Ethane Cracker

Date : Mar 11, 2016

Saudi Arabia's PetroRabigh said on Wednesday it would book around SR750 million ($200 million) in sales revenue this year with the full start-up of its expanded ethane cracker.


However, PetroRabigh said it would only use the expanded production capacity of the cracker on the supply of the ethane gas feedstock.


The joint venture of Saudi Aramco and Japan's Sumitomo Chemical said in a bourse statement it had completed the mechanical works for the cracker, part of the second phase of the expansion of the complex on the Red Sea coast of Saudi Arabia.


PetroRabigh reported a wider net loss in the fourth quarter due to maintenance work at the complex for much of the period.


PetroRabigh's earnings have been hit hard by falling product prices, like many petrochemical firms in the kingdom, as they are closely tied to slumping oil prices.


Saudi producers have also benefited from subsidised energy and feedstock costs, so lower crude prices compress their margins.