Saudi SABIC returns to profit in Q1, net revenue still suggests decline y-o-y
by ChemOrbis Editorial Team - content@chemorbis.com
Saudi Basic Industries Corp (SABIC) has registered a net profit of 250 million riyals ($66.66 million) in the first quarter of 2024, down by 62% compared to 660 million riyals ($176 million) profit reported during the same period of last year. Despite the yearly slump, the company returned to profit following a net loss of SAR1.7 billion ($453 million) in the fourth quarter of 2023. The company also registered a loss for the full year.
The company attributed the decline in net profit to lower revenues and lower results from joint ventures.
SABIC reported sales/revenue of 32.7 billion riyals ($8 billion) in the first quarter of 2024, down by 10% from 36.4 billion riyals ($9.7 billion) in Q1 2023.
Commenting on the first quarter results, SABIC’s CEO Abdulrahman Al-Fageeh said: “The market has yet to grow into the recent run of capacity investments and this overcapacity continues to place significant pressure on our industry. The gap between excess supply and moderated demand growth is set to remain in place for 2024.”
The company attributed the decline in net profit to lower revenues and lower results from joint ventures.
SABIC reported sales/revenue of 32.7 billion riyals ($8 billion) in the first quarter of 2024, down by 10% from 36.4 billion riyals ($9.7 billion) in Q1 2023.
Commenting on the first quarter results, SABIC’s CEO Abdulrahman Al-Fageeh said: “The market has yet to grow into the recent run of capacity investments and this overcapacity continues to place significant pressure on our industry. The gap between excess supply and moderated demand growth is set to remain in place for 2024.”
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