The Saudi Basic Industries Corporation (SABIC) recorded a net loss of 2.18 billion riyals ($ 582 million) in the first nine months of 2020 year-on-year, amid lower product selling prices.
The company said in a disclosure to the Saudi Stock Exchange (Tadawul) - today, Sunday - that its net profit after zakat and tax in the same nine months of last year amounted to 6.09 billion riyals ($ 1.62 billion).
"SABIC" attributed the reason for the change in losses to the decrease in the average selling prices of products, in addition to recording 1.55 billion riyals (414 million dollars) for a decrease in the value of some capital and financial assets.
The total revenues of the company in which Saudi Aramco holds a controlling stake decreased by 18.9% year on year to 84.11 billion riyals ($ 22.45 billion), from 103.72 billion riyals ($ 27.69 billion) in the same period of 2019.
The per share of the loss for the period was about 0.73 riyals, compared with a profit of 2.03 riyals in the corresponding period of 2019.
For the third quarter of the current year, the company recorded an increase in net profits by 47.3% year-on-year to 1.09 billion riyals ($ 291 million).
The company stated that the reason for achieving profits during the third quarter is due to an increase in the average selling prices of products and the quantities produced and sold, in addition to the reversal of the provision for a decrease in the value of some financial assets, net of 0.69 billion riyals.
According to the statement, an increase in the price of Brent crude by more than 50% in the third quarter, compared to the second quarter of 2020, led to an increase in feedstock prices.
The Saudi company indicated that this led to an 8% increase in the cost of sales during the third quarter on a quarterly basis, to 22.78 billion riyals ($ 6.07 billion).