SABIC profit down 10% to SAR 16.24 bln in 9M 2022; Q3 plunges 67% to SAR 1.84 bln

Saudi Basic Industries Corp. (SABIC) reported a net profit after Zakat and tax of SAR 16.24 billion for the first nine months of 2022, a drop of 10% from SAR 18.10 billion in the year-ago period. The giant petrochemical producer reported an increase in feedstock prices alongside higher selling and distribution costs, despite improved average selling prices and higher sales volumes. In addition, SABIC recognized net impairment provisions of some financial assets at SAR 0.53 billion.

The third-quarter net profit after Zakat and tax tumbled 67% to SAR 1.84 billion from SAR 5.6 billion in Q3 2021. SABIC was hurt by higher cost of sales, as well as selling and distribution costs despite better sales volumes. In addition, an impairment provision of SAR 0.51 billion was recognized in financial assets.

Compared to the previous quarter, net profit dived 76.8% from SAR 7.93 billion, on a decline in selling prices, which also contributed to lower results from associates and joint ventures. In addition, an impairment provision of SAR 0.51 billion was recognized in financial assets.

Shareholders’ equity, after minority interest, stood at SAR 182.88 billion as of Sept. 30, 2022, compared to SAR 173.99 billion a year earlier.

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