Home News Saudi chemical giant SABIC posts another loss

Saudi chemical giant SABIC posts another loss

Published on May 04, 2020

Saudi petrochemicals giant SABIC on Monday posted its second quarterly loss in a row for the three months to March, blaming low prices and a slump in demand due to coronavirus.

SABIC, one of the world’s largest chemical firms, said it made a loss of 950 million riyals ($253 million) in the first quarter of 2020 compared to a net profit of $909 million in the same quarter last year.

SABIC, the second-largest listed firm in the kingdom after energy giant Aramco, logged a loss of $192 million in the fourth quarter last year.

It attributed the latest loss to “certain non-recurring charges, a challenging product-pricing environment and lower demand underpinned by COVID-19.”

It also set aside $290 million for a plan to suspend production at one of its chemical plants in Spain.

“Product prices remain challenged with no improvement in the supply/demand balance for key products in the first quarter of 2020 compared to the previous quarter,” chief executive Yousef Abdullah al-Benyan said in a statement.

“This was further aggravated by COVID-19 becoming a global pandemic and the significant decline in Brent (oil) price towards the end of the quarter,” he said.

SABIC, which was acquired by Saudi Aramco for $69 billion last year, saw its 2019 net profit slide 74 percent to $1.5 billion. In 2018, it posted a net income of $5.74 billion.