One of the world’s largest petrochemical manufacturers, Saudi Basic Industries Corporation, or Sabic, will make “at least one acquisition” next year, according to its chief executive.
Yousef Al Benyan, acting vice chairman and chief executive of the Riyadh-based company, said on Thursday that Sabic was planning to announce the potential additions to its core market early in 2016.
“I can tell you that [we are evaluating] between two to four companies in North America and China,” he said on the sidelines of the GPCA petrochemicals conference in Dubai, declining to expand on the types of companies being looked at.
“All options are open as long as those potential targets fit with the strategy either in our core products – specifically technology – we are willing to go after it,” said Mr Al Benyan.
Sabic’s goal is to take advantage of the current market volatility, triggered by the drop in oil prices, which has threatened the industry as margins tighten.
Mr Al Benyan said that the GCC petrochemical industry had to improve its competitiveness with the rising threat of US producers and increasing self-sufficiency of China.
The lower oil price has led to the Middle East downstream sector, which includes refining and petrochemicals, becoming even more vital to regional economic growth.
The impact from the lull in crude prices began to be felt in the petrochemical sector this year as producers, including Sabic, joined oil majors in reporting diminished profits and implementing cost-saving solutions.
Arabian Gulf petrochemical producers are expected to see further declines in profits this year. Yet the countries have invested billions of dollars in downstream projects to help diversify their energy earnings and job creation.
Mr Al Benyan said that oil prices should not continue to drive the industry’s investment. “If we keep focusing on [the] crude oil price, we are running after a mirage – it’s out of our control,” he said, adding that it was pivotal not to let investment fall but rather seek out opportunities, especially in acquiring technology.
Kuwait Petroleum Corporation (KPC) continues to focus more on its downstream investment strategy over the next five years as its seeks to “maximise value”, its chief executive said on Thursday.
“We are moving from investment in upstream to increase value chain optimisation,” said Nizar Al Adsani, deputy chairman and chief executive of KPC.
He said the company’s plan in the upcoming five years was to spend about US$120 billion with $50bn already committed.
“The idea is to move a step forward to secure our markets in the future. That’s why we’re looking to increase assets in Asia,” he said.
Stephen Halliday, chief executive of energy consultancy Wood Mackenzie, said that budget constraints among oil majors would likely delay future investment decisions, but warned the petrochemical industry of the risk of over-saturation from too much investment.
“Despite the rise in ethane pricing, the environment is still positive for chemical investment but beware of contracting margins due to the risk of over-investment,” said Mr Halliday.
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KYLIAN MBAPPE 2016/17 STATS
Ligue 1: Appearances - 29, Goals - 15, Assists - 8
UCL: Appearances - 9, Goals - 6
French Cup: Appearances - 3, Goals - 3
France U19: Appearances - 5, Goals - 5, Assists - 1
Brief scores
Toss India, chose to bat
India 281-7 in 50 ov (Pandya 83, Dhoni 79; Coulter-Nile 3-44)
Australia 137-9 in 21 ov (Maxwell 39, Warner 25; Chahal 3-30)
India won by 26 runs on Duckworth-Lewis Method
Killing of Qassem Suleimani
Singham Again
Director: Rohit Shetty
Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone
Rating: 3/5
From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
The Prison Letters of Nelson Mandela
Edited by Sahm Venter
Published by Liveright
Company%20Profile
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Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
Profile Box
Company/date started: 2015
Founder/CEO: Mohammed Toraif
Based: Manama, Bahrain
Sector: Sales, Technology, Conservation
Size: (employees/revenue) 4/ 5,000 downloads
Stage: 1 ($100,000)
Investors: Two first-round investors including, 500 Startups, Fawaz Al Gosaibi Holding (Saudi Arabia)
MADAME%20WEB
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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.
When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.
How to get there: Emirates currently flies from Dubai to Orlando five times a week.
COMPANY%20PROFILE
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AUSTRALIA SQUAD
Aaron Finch, Matt Renshaw, Brendan Doggett, Michael Neser, Usman Khawaja, Shaun Marsh, Mitchell Marsh, Tim Paine (captain), Travis Head, Marnus Labuschagne, Nathan Lyon, Jon Holland, Ashton Agar, Mitchell Starc, Peter Siddle
'Fantastic Beasts: The Secrets of Dumbledore'
Rating: 3/5
Directed by: David Yates
Starring: Mads Mikkelson, Eddie Redmayne, Ezra Miller, Jude Law
UAE SQUAD
Goalkeepers: Ali Khaseif, Fahad Al Dhanhani, Mohammed Al Shamsi, Adel Al Hosani
Defenders: Bandar Al Ahbabi, Shaheen Abdulrahman, Walid Abbas, Mahmoud Khamis, Mohammed Barghash, Khalifa Al Hammadi, Hassan Al Mahrami, Yousef Jaber, Mohammed Al Attas
Midfielders: Ali Salmeen, Abdullah Ramadan, Abdullah Al Naqbi, Majed Hassan, Abdullah Hamad, Khalfan Mubarak, Khalil Al Hammadi, Tahnoun Al Zaabi, Harib Abdallah, Mohammed Jumah
Forwards: Fabio De Lima, Caio Canedo, Ali Saleh, Ali Mabkhout, Sebastian Tagliabue
Other key dates
-
Finals draw: December 2
-
Finals (including semi-finals and third-placed game): June 5–9, 2019
-
Euro 2020 play-off draw: November 22, 2019
-
Euro 2020 play-offs: March 26–31, 2020
Company%20Profile
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The specs: 2017 Maserati Quattroporte
Price, base / as tested Dh389,000 / Dh559,000
Engine 3.0L twin-turbo V8
Transmission Eight-speed automatic
Power 530hp @ 6,800rpm
Torque 650Nm @ 2,000 rpm
Fuel economy, combined 10.7L / 100km
Kanguva
Director: Siva
Stars: Suriya, Bobby Deol, Disha Patani, Yogi Babu, Redin Kingsley