ZCZC
BCN-05
SAUDI-CHEMICALS-EARNINGS-SABIC
Saudi chemical giant SABIC posts another loss
RIYADH, May 4, 2020 (BSS/AFP) – Saudi petrochemicals giant SABIC on Monday
posted its second quarterly loss in a row for the three months to March,
blaming low prices and a slump in demand due to coronavirus.
SABIC, one of the world’s largest chemical firms, said it made a loss of
950 million riyals ($253 million) in the first quarter of 2020 compared to a
net profit of $909 million in the same quarter last year.
SABIC, the second-largest listed firm in the kingdom after energy giant
Aramco, logged a loss of $192 million in the fourth quarter last year.
It attributed the latest loss to “certain non-recurring charges, a
challenging product-pricing environment and lower demand underpinned by COVID-
19.”
It also set aside $290 million for a plan to suspend production at one of
its chemical plants in Spain.
“Product prices remain challenged with no improvement in the supply/demand
balance for key products in the first quarter of 2020 compared to the previous
quarter,” chief executive Yousef Abdullah al-Benyan said in a statement.
“This was further aggravated by COVID-19 becoming a global pandemic and the
significant decline in Brent (oil) price towards the end of the quarter,” he
said.
SABIC, which was acquired by Saudi Aramco for $69 billion last year, saw
its 2019 net profit slide 74 percent to $1.5 billion. In 2018, it posted a net
income of $5.74 billion.
BSS/AFP/MMA/1609HRS