Sabic's revenue in the third quarter fell by nearly 17 per cent annually to about 36 billion riyals. euters
Sabic's revenue in the third quarter fell by nearly 17 per cent annually to about 36 billion riyals. euters
Sabic's revenue in the third quarter fell by nearly 17 per cent annually to about 36 billion riyals. euters
Sabic's revenue in the third quarter fell by nearly 17 per cent annually to about 36 billion riyals. euters

Sabic swings to third-quarter loss on lower revenue


Fareed Rahman
  • English
  • Arabic

Saudi Basic Industries Corporation (Sabic), the Middle East's biggest petrochemicals company, swung to a loss in the third quarter on lower revenue caused by weak demand for global petrochemical products, as well as non-cash losses from a new deal with the Public Investment Fund.

The company reported a net loss of 2.88 billion Saudi riyals ($768 million) in the three months to the end of September, compared with a net profit of 1.84 billion riyals during the same period last year, it said on Thursday in a filing to the Tadawul stock exchange, where its shares are traded.

Revenue for the period fell by nearly 17 per cent, year on year, to about 36 billion riyals.

The company said it incurred non-cash losses amounting to 2.93 billion riyals during the quarter as a result of the PIF's acquisition of Sabic’s entire stake in the Saudi Iron and Steel Company, better know as Hadeed.

“Despite the global weak demand for chemicals, Sabic managed to increase sales volume by 7 per cent with improvement in earnings before interest, taxes, depreciation, and amortisation margin for this quarter,” its chief executive Abdulrahman Al-Fageeh said.

He also said the Hadeed transaction was a strategic one and would “help Sabic to realise its strategic goals to become the preferred world leader in chemicals”.

The average selling price of petrochemicals products globally declined by 5 per cent, quarter on quarter, while prices for agri-nutrient products increased by 11 per cent, the company said.

In the nine months period to the end of September, the company reported a net loss of one billion riyals, compared to a profit of 16.2 billion riyals, as revenue slumped about 26 per cent annually to 106.5 billion riyals.

The company plans to spend between $3.5 billion and $3.8 billion in 2023.

Sabic is playing a key role in Saudi Arabia's plan to reduce its reliance on oil exports.

Last year, the company announced plans to set up a plant to convert crude oil into petrochemicals in Ras Al Khair, with a capacity of 400,000 barrels per day.

In December, Sabic signed an agreement with Oman’s state energy company OQ and Kuwait Petroleum International to set up a petrochemical complex in the sultanate.

Earlier this year, the company, in partnership with the China Petroleum and Chemical Corporation, better Sinopec, also started the commercial operation of their new polycarbonate plant in Tianjin, China.

The new production centre is situated within the Sinopec-Sabic-Tianjin Petrochemical complex jointly owned by Sabic and Sinopec.

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Ferrari 12Cilindri specs

Engine: naturally aspirated 6.5-liter V12

Power: 819hp

Torque: 678Nm at 7,250rpm

Price: From Dh1,700,000

Available: Now

Tips for taking the metro

- set out well ahead of time

- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines

- enter the right cabin. The train may be too busy to move between carriages once you're on

- don't carry too much luggage and tuck it under a seat to make room for fellow passengers

RESULTS

West Asia Premiership

Thursday
Jebel Ali Dragons 13-34 Dubai Exiles

Friday
Dubai Knights Eagles 16-27 Dubai Tigers

A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

The%20Emperor%20and%20the%20Elephant
%3Cp%3E%3Cstrong%3EAuthor%3A%20%3C%2Fstrong%3ESam%20Ottewill-Soulsby%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPublisher%3A%20%3C%2Fstrong%3EPrinceton%20University%20Press%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPages%3A%20%3C%2Fstrong%3E392%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAvailable%3A%20%3C%2Fstrong%3EJuly%2011%3C%2Fp%3E%0A
F1 The Movie

Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

Updated: November 02, 2023, 12:50 PM`