Saudi Basic Industries Corporation (SABIC) returned to profit in Q3 after the global signs of recovery from the coronavirus, according to Bloomberg.
According to data compiled by Argaam, SABIC reported a rise of 47% in net profit after Zakat and tax to $290 million in Q3 2020. Profit was higher mainly due to the reversal of 690 million riyals of impairments associated with Clariant AG, in which Sabic holds a 31.5% stake.
Despite the cause for optimism, SABIC erred on the side of caution, saying: “Even without Covid-19 impact, supply still exceeds demand for our key products, which will continue to pressure product prices and margins for the foreseeable future.”
SABIC has also seen a cut back in capital spending with the re-evaluation of their $20 billion crude-oil-to-chemicals projects with a view to integrating existing facilities instead.
Sabic reported its biggest quarterly loss in at least a decade between April and June as the virus pandemic hit sales of plastics, cosmetics, and other petrochemical products.