Skip to content Skip to Search
Skip navigation

Sabic slumps to loss as petrochem prices slide

Sabic site in Jubail Sabic
A Sabic manufacturing site in Jubail. The company reported a big loss in the third quarter
  • SAR2.88bn loss in Q3
  • Blames ‘stagnation in global demand’
  • Big non-cash loss on Hadeed stake sale

Petrochemicals producer Saudi Basic Industries Corporation (Sabic) swung to a net loss in the third quarter, hit by a slump in product prices, a loss from offloading a subsidiary and a hefty impairment on its European operations.

Sabic, 70 percent owned by Saudi Aramco, made a net loss of SAR 2.88 billion in the three months to September 30. That compares with a profit of SAR 1.84 billion in the prior-year period, the company said in a statement to Riyadh’s bourse on Thursday.

Revenue declined 17 percent to SAR 35.98 billion as operating profit halved.

Sabic blamed its quarterly net loss on a “stagnation in global demand for chemicals, which led to a decrease in average selling prices”.

Petrochemical product prices normally track those of oil, so steady crude prices should have supported margins for Saudi Arabia’s producers, which benefit from subsidised feedstocks.

But oversupply and muted demand from major buyers such as China depressed petrochemical product prices, and margins among Saudi Arabia’s manufacturers have tumbled to 20-year lows.

The company made a non-cash loss of SAR 2.93 billion on its sale of its entire stake in Saudi Iron and Steel Company (Hadeed) to the state-owned Public Investment Fund.

Sabic, which announced the Hadeed sale on September 3, also took a SAR 255 million impairment on its European operations.

The company, the world’s seventh-largest petrochemicals maker by annual sales according to S&P Global, made a nine-month net loss of SAR 1.04 billion. That compares with a net profit a year earlier of SAR 16.24 billion.

Latest articles

An artist's impression of part of the Diriyah Square development

Diriyah Square planned for historic Riyadh district

A public space featuring 400 retail outlets and 100 restaurants and cafes is planned for the historic Riyadh district of Diriyah. Diriyah Square will be announced next week at the World Retail Congress in Paris and aims to attract a combination of international retail brands and local artisans.  Diriyah Gate Development Authority group CEO Jerry […]

Nature, Undersea cables account for as much as 90 percent of Europe-Asia telecommunications, Water

Iraq and Kuwait team up for European telecom corridor

Iraq’s Informatics and Telecommunication Public Company, a division of the Ministry of Communications, has signed an agreement with Kuwait’s Zajil Telecom to create a telecommunications corridor from the Gulf region to Europe, transiting through Iraq and Turkey. The new route will pass through Iraqi sea and land ports. Iraq’s minister of communications Hayam Al-Yasiri said […]

Passengers at Beijing Capital International Airport. Air China will fly from the airport to Riyadh three times a week.

Third Chinese airline to launch flights to Saudi Arabia

Air China is set to begin flights to Riyadh in May, becoming the third Chinese airline to establish a route to Saudi Arabia. It joins China Southern and Eastern Airlines in connecting China with the kingdom.  Air China’s Airbus A330-300 will serve the Beijing-Riyadh route three times a week. The expansion in capacity between the […]

Turkish crude steel output rose 25% year on year to 3.2 million tonnes in January

Turkish steel in the black but EU rules rankle

Turkey’s steel industry has rebounded strongly from a weak 2023, despite facing new emissions standards and competition for important markets.  Crude steel output rose 25 percent year on year to 3.2 million tonnes in January, with domestic consumption of finished steel reaching 3.5 million tonnes, a 20 percent increase.  Exports were also up, increasing 23 […]