SABIC posts rare loss for Q4 2019

The company's net profit for the full year also dropped drastically by 74%

SABIC, Saudi Aramco
Olivier Lantzendorffer

Saudi petrochemicals giant SABIC said on Wednesday it posted a rare loss in the fourth quarter of last year, due to low prices and the allocation of a huge emergency provision.

The world's fourth-biggest petrochemicals firm posted a net loss of 720 million riyals ($191.94 mn) after tax, mainly due to lower average selling prices.

SABIC swung to the loss from a profit of 3.22 billion riyals ($859 mn) during the same quarter a year earlier, the company said in a bourse filing.

The loss was also due to a 2.8 bn impairment provision at its affiliate Arabian Industrial Fibers Co (Ibn Rushd), it said.

"Despite an uptick in Brent oil prices in the fourth quarter, the results were negatively impacted by a further decline in petrochemical prices driven by oversupply in the key products and slowing global growth coupled with seasonal impacts,” SABIC said in a statement.

For the whole of 2019, Sabic net profit dropped a massive 74%, the company said, also citing lower prices and allocation of emergency provisions.

"The petrochemical industry was negatively impacted in 2019 by additional new supply in key products coming on-stream coupled with a moderation in global growth compared to 2018," Sabic CEO Yousef Abdullah al-Benyan said in a statement.

EU antitrust regulators will decide by Feb. 27 whether to clear state energy firm Saudi Aramco's 2222.SE $69.1 billion acquisition of SABIC, according to a European Commission filing.

Webinar - Register to attend: Oil & gas at a digital tipping point

In partnership with leading global engineering company ABB. The webinar is free but can only be accessed by registering below in advance.

Newsletter

Most Popular

Digital Edition

Oil & Gas Middle East - July/August 2020

Subscribe Now