Dubai, UAE — Saudi Basic Industries has reported a 90 percent decline in net income to SAR 0.66 billion ($177 million) in the first quarter, compared to SAR 6.47 billion ($1.77 billion) in the same period last year.
The company said in a statement that its revenue for the first quarter reached SAR 39.69 billion ($10.58 billion), a decrease of 8 percent compared to the previous quarter.
The statement said that the company expects the margins to remain under pressure in the second quarter, while expecting an average global GDP growth rate of 2.1 percent for 2023. It added that high inflation and interest rates continue to add to the uncertainty of global demand growth.
SABIC CEO Abdulrahman Al-Fageeh said, “New capacities in Q1 2023 are adding more pressure on global prices, while there is limited relief on variable cost. We continue to keep our operating costs under control and maintain our strong balance sheet. Despite current market uncertainties, our determination to deliver on growth, innovation and sustainability remains intact.”
To deliver on growth, he added, the Shareek program will play a key role in the company’s next growth phase.
The first package of initiatives was launched during this first quarter of 2023, whereby SABIC will contribute to the transformation of Saudi Arabia into a manufacturing hub for specialized materials through a strategic project to build and manufacture catalysts, he said.