Saudi chemical giant Sabic loss tops US$590m on low sales

The headquarters of Saudi Basic Industries Corp (Sabic) is seen in Riyadh, Saudi Arabia April 19, 2016. — Reuters pic
The headquarters of Saudi Basic Industries Corp (Sabic) is seen in Riyadh, Saudi Arabia April 19, 2016. — Reuters pic

RIYADH, Aug 6 — Saudi petrochemicals giant Sabic said today it posted a loss in the three months to end-June, the third quarterly loss in a row, due to low sales and impairments.

Sabic, the world’s fourth largest chemical firm, said it posted a loss of 2.22 billion riyals (US$592 million/RM2.4 billion) in the April to June quarter, compared to a net profit of 2.03 billion riyals in the corresponding quarter last year.

The company, acquired by Saudi Aramco for US$69 billion (RM289.1 billion) in a deal agreed in 2019 and completed in June this year, posted a loss of US$872 million in the first half of 2020 compared to a net profit of US$1.4 billion in the same period a year ago.

It attributed the losses to a lower average price and sales volume, mainly due to the impact of the coronavirus pandemic.

It also said it has allocated US$608 million as impairments provisions in certain capital assets in the first six months. 

Sabic’s bottom line had been deteriorating even before the coronavirus crisis due to a sharp fall in international prices.

The company posted a net profit of US$1.5 billion in 2019 compared to US$5.74 billion in the previous year. — AFP

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