Riyadh, Saudi Arabia — Saudi Basic Industries Corporation (SABIC) posted a net loss of SAR 1.04 billion ($277 million) in the first nine months of 2023, against a net profit of SAR 16.24 billion a year earlier.
In the third quarter period, the petrochemicals giant swung to a net loss of SAR 2.9 billion, against a net profit of SAR 1.84 billion in Q3 2022, Argaam reported.
SABIC cited stagnation in global demand for chemicals, which weighed on average selling prices, and led sales value to drop by SAR 7.3 billion year-on-year (YoY).
It reported a decline of SAR 919 million YoY in its profit share from JVs and associates, primarily due to a decrease in sales volumes and selling prices.
An impairment charge of SAR 255 million was recorded in certain capital assets, as part of the restructuring program in Europe to improve the return on investment, according to Argaam.
The company recorded SAR 2.93 billion non-cash losses on the Public Investment Fund’s acquisition of SABIC’s entire stake in Hadeed.
SABIC sustained losses, against net earnings of SAR 1.18 billion in Q2 2023, as its profit share from JVs and associates decreased by SAR 669 million on a sequential basis.