SABIC posts SAR 2.8B loss in 2023; Q4 at SAR 1.7B

Saudi Basic Industries Corp. (SABIC) swung to a net loss of SAR 2.8 billion in 2023, against a net profit of SAR 16.5 billion a year earlier.

The losses were primarily attributed to a decline in revenue, due to a decrease in average selling prices and sales volumes, amid the slow global demand for petrochemicals in 2023. In addition, global supply capacities increased.

SABIC recorded SAR 4.08 billion net losses from discontinued operations after incurring non-cash losses of SAR 2.93 billion from Hadeed’s investment reassessment and its performance in 2023.

The company’s profit from continuing core operations amounted to SAR 1.31 billion compared to SAR 15.79 billion in 2022 mainly due to a decline in profit margins for major products, as well as earnings of joint ventures and associated companies with non-recurring items of SAR 3.47 billion, in which SABIC’s share was SAR 3.29 billion. This came as a result of impairment charges and write-offs of certain capital and financial assets as well as provisions for the restructuring program in Europe and constructive obligations.

On the other hand, selling and distribution expenses, Zakat charges and the income tax decreased. The company reported an increase in finance income, mainly due to revaluation gains connected with embedded derivatives in joint venture contracts.

In Q4 2023, the major petrochemical producer turned to a net loss of SAR 1.7 billion from net earnings of SAR 302.7 million.

Total shareholders’ equity, after minority interest, dropped to SAR 167.43 billion as of Dec. 31, 2023, from SAR 186.05 billion a year earlier.

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