SABIC incurs SAR 3.27 bln net losses in H1 2020

Saudi Basic Industries Corp. (SABIC) reported a net loss after Zakat and tax of SAR 3.27 billion for H1 2020, compared to a net profit of SAR 5.35 billion in year-earlier period.

The petrochemicals giant attributed the losses to lower average selling prices and sales volumes, impairment provision for certain capital and financial assets worth SAR 2.28 billion, including the impairment provision in the Spain-based ULTEM™ polymers plant at SAR 713 million.

In Q2 2020, SABIC swung to a net loss after Zakat and tax of SAR 2.22 billion, against a net profit of SAR 2.03 billion a year earlier, hit by lower average selling prices and sales volume, in addition to SAR 1.18 billion worth of impairment provisions for certain capital assets.

When compared to the previous quarter, net losses widened by 111.4% on a drop in average selling prices, in addition to impairment provisions for certain capital assets at a total value of SAR 1.18 billion.