SABIC Reports Rise of Net Profit in Q3

SABIC Reports Rise of Net Profit in Q3

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.


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