Saudi Basic Industries Corp (SABIC), one of the biggest petrochemical companies globally, said it pivoted to a loss of 2.88 billion riyals ($768 million) in Q3 2023 on lower demand leading to a drop in sales revenue.
According to LSEG data, analysts’ average forecast for SABIC was a net loss of SAR 135.7 million in Q3. The petrochemicals major had posted a net profit of SAR 1.84 billion in the year-earlier period.
Why it matters
The stagnation in global demand for chemicals has led to a decrease in average selling prices, and thus a decrease in the value of sales by SAR 7.3 billion. Moreover, the quarter saw a decrease in SABIC's share in the results of joint ventures and associated companies, amounting to SAR 919 million, due to the drop in their sales quantity and lower selling prices.