The company incurred a net loss of 2.88 billion Saudi Riyals in the current quarter compared to net profit of 1.84 Billion Saudi Riyals in the same quarter of the previous year. It is worth noting that there are non-cash losses as a result of the Public Investment Fund’s acquisition of SABIC’s entire stake in the Saudi Iron and Steel Company (Hadeed), which was previously announced, amounting to 2.93 Billion Saudi Riyals. Note that this deal will enable SABIC to focus on its strategic business portfolio, to maintain its leadership competitiveness and prepare the company for a new era of growth in the field of petrochemicals. With a robust sales volume performance combined with cost containment efforts, the company maintained a positive momentum in its continuing operations leading to a net income of 536 Million Saudi Riyals in the current quarter. In the same quarter of prior year, the company generated a net income from continuing operation of 1.64 Billion Saudi Riyals, a decrease of 67%. This is due to the following reasons: • The stagnation in global demand for chemicals, which led to a decrease in average selling prices, and thus a decrease in the value of sales by 7.3 Billion Saudi riyals despite the increase in the quantities sold. • A decrease in SABIC's share in the results of joint ventures and associated companies, which amounted to 919 Million Saudi Riyals. This mainly attributable to the decrease in their sales quantity and lower selling prices. • Recording an impairment charge in certain capital assets, which amounted to 255 Million Saudi Riyals as part of the restructuring program in Europe to improve the return on investment. |
Comments