Saudi chemical giant SABIC loss tops $590 million on low sales
World's fourth-largest chemical firm posts loss of 2.22 billion riyals
RIYADH: Saudi petrochemicals giant SABIC said on Thursday it posted a loss in the three months to end-June, the third quarterly loss in a row, due to low sales and impairments.
SABIC, the world's fourth largest chemical firm, said it posted a loss of 2.22 billion riyals ($592 million) in the April to June quarter, compared to a net profit of 2.03 billion riyals ($541 million) in the corresponding quarter last year.
The company, acquired by Saudi Aramco for $69 billion in a deal agreed in 2019 and completed in June this year, posted a loss of $872 million in the first half of 2020 compared to a net profit of $1.4 billion in the same period a year ago.
It attributed the losses to a lower average price and sales volume, mainly due to the impact of the coronavirus pandemic.
It also said it has allocated $608 million as impairments provisions in certain capital assets in the first six months.
SABIC's bottom line had been deteriorating even before the coronavirus crisis due to a sharp fall in international prices.
The company posted a net profit of $1.5 billion in 2019 compared to $5.74 billion in the previous year.