Page 44 - Plastics News June 2021

Business news

Aramco’s Q1 net income up 30% Dallas Plastics buys US film

to $21.7 billion manufacturer Hi-De Liners

he Saudi Arabian Oil Company (“Aramco”) posted a 30% allas Plastics, a portfolio
Tyear-on-year increase in net income to $21.7 billion Dcompany of private
for its first quarter and has declared a dividend of $18.8 equity firm Sole Source
billion to be paid in Q2. The results were underpinned by Capital, is expanding into the
higher oil prices and an improved economic environment high-density polyethylene
in the first three months of 2021. Aramco’s net income (HDPE) film market by
was $21.7 billion for the first quarter, a 30% increase from acquiring Hi-De Liners.
$16.7 billion in Q1 2020, primarily driven by a stronger oil Dallas Plastics is a leading
market and higher refining and chemicals margins, partly manufacturer of blown
offset by lower production. Cash flow from operating polyethylene film with
activities and free cash flow* was $26.5 billion and $18.3 printing, embossing and
billion respectively in the first quarter, while first quarter other value-added capabilities for the medical, food
capital expenditure stood at $8.2 billion Aramco President and industrial end markets. While Headquartered
& CEO Amin H. Nasser, said, “The momentum provided in Orange, Massachusetts, Hi-De Liners specialises
by the global economic recovery has strengthened in manufacturing blown HDPE and linear low-density
energy markets, and Aramco’s operational flexibility, polyethylene film (LLDPE). The company serves the
financial agility and the resilience of our employees have industrial and converter end markets, including
contributed to a strong first quarter performance. For janitorial supply, hospitality, seafood, bakery, medical
our customers we remain a supplier of choice, and for and manufacturing segments. All its products are
our shareholders we continue to deliver an exceptional made using virgin resin approved by the US Food and
quarterly dividend. “We made further progress towards Drug Administration (FDA).The financial details of the
our strategic objectives during the quarter and our transaction have not been disclosed. Dallas Plastics
portfolio optimization program continues to identify value CEO Kevin Pierce said: “We’re excited to welcome Hi-
creation opportunities, such as the recent announcement De Liners to our portfolio. Its focus on HDPE products
of our landmark $12.4 billion pipeline infrastructure deal. is a great addition to our growing company. “We
We also expect Saudi Arabia’s newly-launched Shareek
look forward to continuing to provide Hi-De Liners’
customers with the excellent customer service they’ve
come to expect from Bill Horne and his team over the
past 13 years.” The acquisition of Hi-De Liners will add a
fourth production site to Dallas Plastics’ US operations.
It will also increase the company’s production capacity
and customer base, as well as reinforcing its position
in the manufacture and distribution of speciality films.
Sole Source Capital M&A partner Scott Sussman said:
“Hi-De Liners has a proven commitment to providing
customised solutions to its customers and will be
a great fit with the Dallas Plastics team.” Based in
Mesquite, Texas, Dallas Plastics serves medical, food
program to present growth opportunities, through and industrial end markets with blown PE film that
incentives which encourage partnerships and investment. includes printing, embossing and other capabilities.
“Given the positive signs for energy demand in 2021, The company was acquired by Sole Source Capital last
there are more reasons to be optimistic that better days October and uses Sole Source Capital’s operational
are coming. And while some headwinds still remain, we expertise, networking and mergers and acquisitions
are well-positioned to meet the world’s growing energy (M&A) experience to continue its expansion across
needs as economies start to recover.”
North America.

Plastics News June 2021 44