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2024/2/28@ICIS
SABIC Z
Saudi Arabiafs chemicals major SABIC swung to a net loss of Saudi riyal (SR) 2.77bn ($739m) in 2023, largely due to one-off losses related to a divestment, while earnings from continued operations shrank amid challenging global market conditions.
| in Saudi Riyal (SR) bn @@@1$=3.75 | 2023 | 2022 | % Change |
| Revenue | 141.5 | 183.1 | -22.7 |
| EBITDA | 19.0 | 36.4 | -47.7 |
| Net income from continuing operations | 1.3 | 15.8 | -91.8 |
| Net income attributable to equity holders of the parent | -2.8 | 16.5 | – |
The companyfs net loss for 2023 was gdriven mainly from the fair valuation of the Saudi Iron and Steel Co (Hadeed) businessh, SABIC in a filing to the Saudi bourse Tadawul on 27 February.
In early September 2023, SABIC announced it had agreed to sell its entire stake in the Saudi Iron and Steel Co (Hadeed) to Saudi Arabiafs sovereign wealth fund for SR12.5bn.
The sale resulted in non-cash losses worth SR2.93bn.
From continuing operation, full-year net income declined by 91.8% on reduced profit margins for major products, as well as lower earnings of joint ventures and associated firms.
SABIC also incurred charges from non-recurring items amounting to SR3.47bn in 2023,gas a result of impairment charges and write-offs of certain capital and financial assets as well as provisions for the restructuring program in Europe and constructive obligationsh.
Meanwhile, SABICfs average product sales price in 2023 fell by 21%, reflecting the global downturn in petrochemical markets, it said.
Overall sales volumes fell by 2% year on year in 2023 amid sluggish end-user demand, the company said.
gYear 2023 presented numerous challenges for the petrochemical industry – the market environment was shaped by lackluster macroeconomic sentiment, weak end-user demand, and a wave of incremental supply for a large suite of products,h it said.
The companyfs petrochemicals business posted a 20% year-on-year decline in sales to SR131.3bn in 2023, with EBITDA down by 42% at SR14.6bn.