Saudi Chemical Giant Sabic Posts Third Straight Quarterly Loss

(Bloomberg) – Saudi Arabia’s largest chemical company, in the midst of a long industry regression, has released three -month loss of analyst estimates for three consecutive months.

According to a statement on Sunday, Saudi Basic Industries Corp. has reported a clear loss of approximately 4.1 billion rial ($ 1.1 billion) compared to 1.2 billion rial loss in the previous period. Analysts were expecting 1.1 billion profits.

The company attributed the losses to the fees of low value for the closing of assets in the United Kingdom at the Teesside facility in the UK and the investment in Clariant. It also increased in financing costs.

Sabic said that the market sense remained uncertain and weighed with ongoing global economic uncertainty and ongoing geopolitical tensions.

Earlier this year, SABIC announced its plan to restructure the company to reduce costs, as it shrinks the margins of the world’s large chemical companies in the world. Companies sell assets and blinds in response to difficulties.

Dow Inc. reported the first three -month loss in five years last month and said it would close three plants in Europe. Lyondellbasell, while missing its second quarter earnings and a delayed construction in a project in Texas, he says that there is a “cautious optimistic üzerinde on the development of EXECECS capacity in Europe and the development of the industry in Europe. After the results, his shares fell 8% on Friday.

While Basf se sells a unit to focus on its basic business, Shell Plc said that his chemical work has been suffering for a while.

Analysts expect Sabic to encounter margin pressure and weak pricing due to permanent excessive supply in basic petrochemical products, but are seen as diversified portfolio and fixed feeding cost structure supporting margins. As part of a wider operational examination, SABIC is considering a public list of the Industrial Gases Unit.

The shares of the chemical giant decreased by about 20% this year. The wider Saudi index fell to half of this amount at the same time.

Saudi Aramco, the world’s largest oil exporter, has the majority of Sabic and will have report gains on August 5th.

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