Sabic, the region’s biggest petrochemicals firm, reported its third consecutive quarterly loss on the back of lower selling prices for its products and impairment provisions on certain assets.
The company registered a net loss of 2.22 billion Saudi riyals (Dh2.17bn) for the second quarter of 2020, compared with a profit of 2bn riyals for the same period last year, Sabic said in a filing to the Tadawul exchange, where its shares trade.
The company declared impairment provisions of 1.18bn riyals related to certain capital assets, including a polymers plant in Spain, which it said had an impact on its profits.
The company took a significant hit in the second quarter, with the business picking up in July and August, said chief executive Yousef Al Benyan. Average petrochemical prices had fell 27 per cent year-on-year in the second quarter and 18 per cent from first-quarter levels.
"The future of demand is driven by uncertainties in the energy market. Market conditions are going to put pressure on the chemical industry for the remainder of this year," he told an earnings briefing.
Saudi Aramco, which produces and sells oil on behalf of the kingdom completed acquisition of a 70 per cent interest in Sabic in June. The state-backed company acquired the stake worth $69.1bn from the sovereign Public Investment Fund.
Following Aramco’s acquisition of the shares, Sabic was “retrospectively” reassigning its control over investments related to its affilates, Saudi Petrochemical Company (Sadaf) and Arrrazi methanol plant.
In May, Sabic merged Sadaf and Petrokemya to drive "efficiency and competitiveness” of its operations.
"Sabic has performed retrospective control reassessment over Sadaf and Arrazi prior to the acquisitions of additional shares and classified them as joint arrangements,” it said in a note to the Tadawul exchange.
The company’s sales revenue declined 29.46 per cent to 24.62bn riyals for the second quarter on a year-on-year basis.
Aramco acquired Sabic as part of its larger plans to increase global refining capacity from 4.9 million to 8 million-to-10 million barrels per day by 2030. Around 2m bpd to 3m bpd of the output will be converted into petrochemical products. This downstream portfolio will consume significant quantities of Saudi Arabia's crude oil.
UAE currency: the story behind the money in your pockets
KILLING OF QASSEM SULEIMANI
The five pillars of Islam
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
KILLING OF QASSEM SULEIMANI
UAE currency: the story behind the money in your pockets
Killing of Qassem Suleimani
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Farage on Muslim Brotherhood
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
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Winner: Jawal Al Reef, Fernando Jara (jockey), Ahmed Al Mehairbi (trainer)
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The five pillars of Islam
1. Fasting
2. Prayer
3. Hajj
4. Shahada
5. Zakat
Killing of Qassem Suleimani
Killing of Qassem Suleimani
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FA Cup quarter-final draw
The matches will be played across the weekend of 21 and 22 March
Sheffield United v Arsenal
Newcastle v Manchester City
Norwich v Derby/Manchester United
Leicester City v Chelsea
War
Director: Siddharth Anand
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Rating: Two out of five stars
Mohammed bin Zayed Majlis
Biog
Age: 50
Known as the UAE’s strongest man
Favourite dish: “Everything and sea food”
Hobbies: Drawing, basketball and poetry
Favourite car: Any classic car
Favourite superhero: The Hulk original
