Saudi Basic Industries Corp. (SABIC) turned to a net loss of SAR 1.04 billion in the first nine months of 2023, against a net profit of SAR 16.24 billion a year earlier.
| Item | 9m 2022 | 9m 2023 | Change |
|---|---|---|---|
| Revenues | 143,540.81 | 106,505.05 | (25.8 %) |
| Gross Income | 35,614.60 | 17,751.51 | (50.2 %) |
| Operating Income | 19,831.28 | 4,228.47 | (78.7 %) |
| Net Income | 16,237.02 | (1041.03) | (106.4 %) |
| Average Shares | 3,000.00 | 3,000.00 | - |
| EPS (Riyals) | 5.41 | (0.35) | (106.4 %) |
The losses were attributed to a stagnation in global demand for chemicals, which weighed on average selling prices. Accordingly, sales value dropped by SAR 37 billion year-on-year (YoY).
SABIC reported a decline of SAR 3.64 billion YoY in its profit share from joint ventures and associates, primarily due to a decrease in sales volumes and selling prices.
Moreover, the company recorded SAR 2.93 billion non-cash losses on the Public Investment Fund’s acquisition of SABIC’s entire stake in the Saudi Iron and Steel Co. (Hadeed), which was previously announced.
This deal will enable SABIC to focus on its strategic business portfolio, to maintain its leadership competitiveness and prepare the company for a new era of growth in the field of petrochemicals.
| Item | Q3 2022 | Q3 2023 | Change |
|---|---|---|---|
| Revenues | 43,316.20 | 35,975.30 | (16.9 %) |
| Gross Income | 8,182.04 | 6,590.03 | (19.5 %) |
| Operating Income | 2,849.93 | 2,038.39 | (28.5 %) |
| Net Income | 1,835.92 | (2876.36) | (256.7 %) |
| Average Shares | 3,000.00 | 3,000.00 | - |
| EPS (Riyals) | 0.61 | (0.96) | (256.7 %) |
| Item | Q2 2023 | Q3 2023 | Change |
|---|---|---|---|
| Revenues | 37,166.81 | 35,975.30 | (3.2 %) |
| Gross Income | 5,373.26 | 6,590.03 | 22.6 % |
| Operating Income | 775.28 | 2,038.39 | 162.9 % |
| Net Income | 1,178.42 | (2876.36) | (344.1 %) |
| Average Shares | 3,000.00 | 3,000.00 | - |
| EPS (Riyals) | 0.39 | (0.96) | (344.1 %) |
In the three-month period, the giant petrochemical producer swung to a net loss of SAR 2.9 billion, versus a net profit of SAR 1.84 billion in Q3 2022.
SABIC cited stagnation in global demand for chemicals, which weighed on average selling prices, and led sales value to drop by SAR 7.3 billion year-on-year (YoY).
It reported a decline of SAR 919 million YoY in its profit share from JVs and associates, primarily due to a decrease in sales volumes and selling prices.
An impairment charge of SAR 255 million was recorded in certain capital assets, as part of the restructuring program in Europe to improve the return on investment.
Moreover, the company recorded SAR 2.93 billion non-cash losses on the Public Investment Fund’s acquisition of SABIC’s entire stake in Hadeed.
Compared with the previous quarter, SABIC swung to losses from net earnings of SAR 1.18 billion in Q2 2023, as its profit share from JVs and associates decreased by SAR 669 million on a sequential basis.
An impairment charge of SAR 255 million was recorded in certain capital assets.
Total shareholders’ equity, after minority interest, declined to SAR 173.90 billion as of Sept. 30, 2023, from SAR 182.88 billion a year earlier.
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