DUBAI: Abu Dhabi plastics manufacturer Borouge expects steady demand to help stabilise product prices in 2015 after oil’s plunge pushed plastic prices down 20 percent between September and January, a senior executive said yesterday.
Borouge is a joint venture between state-owned Abu Dhabi National Oil Company and Austria’s Borealis.
Its product prices fell by an average of 20 percent from September to January, Hazeem Sultan Al Suwaidi, Borouge senior vice president for Middle East and Africa, told reporters.
“I see 2015 as very challenging for all petrochemicals given the fact that oil prices continue to drop,” said Suwaidi.
“The consumer packaging that we use every day, that’s not going to stop — demand for that segment is quite strong,” he added.
Petrochemical prices are linked to oil prices, because crude is often the main feedstock. Borouge relies on gas instead, but oil has still had an impact on plastic prices due to the broader correlation between oil and petrochemicals, said Suwaidi.
Gulf producers also typically enjoy subsidised energy costs, meaning higher energy prices provide a greater competitive advantage over manufacturers lacking such benefits.
Borouge’s 2014 capacity was about two million tonnes and will reach nearly four million tonnes this year as its Borouge three plant, in which it has invested up to $4bn, raises production. Capacity will be 4.5 million tonnes in 2016, said Suwaidi.
DUBAI: Saudi British Bank (SABB) has received approval to raise its capital by 50 percent to SR15bn ($4bn) through a bonus share issue, the bourse regulator said yesterday.
The Capital Market Authority said Saudi British Bank, an affiliate of HSBC Holdings, could issue one bonus share for every two shares held, increasing the number of the bank’s outstanding shares to 1.5 billion from 1 billion.
Agencies
