Equate H1 net income shoots up four-fold to $348mln

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The Equate Group, a global producer of petrochemicals and the world’s leading supplier of ethylene glycol, has seen its first-half (H1) net income after tax shoot up nearly four-fold to $348 million and revenue surge to $1.86 billion.

The group’s revenue in H1 2023 was $1.52 billion and net income after tax $89 million. Equate posted EBITDA of $650 million in H1 2024 compared to $377 million for H1 2023.

While the industry recovery continues to be slow due to challenging market conditions, macroeconomic uncertainty, and global supply chain volatilities, Equate’s performance remained resilient.

Robust demand recovery

Leveraging its global presence, market leadership and responding with agility to market opportunities, Equate continues to capitalise on robust demand recovery in select higher-value regional markets.

Naser Aldousari, President & CEO of Equate Group, said: “Our performance in the first half of 2024 highlights the resilience and strength of our operations during a challenging global environment. Despite these challenges, we achieved robust financial results with our disciplined approach to operational efficiency and cost management.”

He added: “As we look ahead, we are mindful of the evolving market conditions and remain committed to maintaining our leadership position. By optimising operations, investing in sustainability, and enhancing our market presence, we aim to continue delivering value to our stakeholders. The global market may present challenges, but our initiatives and commitment to excellence position us well for sustained success.”

Dollar-denominated sukuk

In August, as part of its second-half activities for 2024, Equate announced the launch of a $750 million dollar-denominated 7-year Islamic bond (Sukuk). The issuance attracted strong interest from global investors, with demand exceeding $2 billion, which underscored market confidence in the Group. The proceeds are earmarked for refinancing existing debts maturing within the next nine months, further bolstering the company’s strong liquidity position.

Aldousari said: “Equate's recent issuance of a 7-year Sukuk was met with overwhelming demand from global investors. This strong interest is a clear endorsement of Equate's robust financial performance, operational excellence, and commitment to sustainable growth."