SABIC incurs SAR 2.18 bln net loss in 9M 2020 on lower selling prices, volumes

Saudi Basic Industries Corp. (SABIC) reported a net loss after Zakat and tax of SAR 2.18 billion for the first nine months of 2020, compared to a net profit of SAR 6.09 billion in year-earlier period.

The petrochemicals giant attributed the losses to lower average selling prices and sales volumes. It also allocated an impairment provision for certain capital and financial assets, net of SAR 1.55 billion.

In Q3 2020, SABIC reported a rise of 47% in net profit after Zakat and tax to SAR 1.09 billion, compared to a net profit of SAR 0.74 billion a year earlier, driven by higher production and sales volumes, in addition to reversal of impairment provisions in certain financial assets, net of SAR 0.69 billion.

The company turned to profitability from a net loss of SAR 2.22 billion in Q2 2020. SABIC’s quarterly results were backed by a rise in average selling prices, as well as higher production and sales volume. The giant petrochemical producer also reversed impairment provisions in certain financial assets, net of SAR 0.69 billion.