DUBAI - Saudi Basic Industries Corp posted a net profit of 2.22 billion riyals ($592 million) in the fourth quarter, reversing a loss a year earlier as the impairment charges it took on certain capital assets were reversed.
SABIC had reported a net loss of 890 million riyals in the same quarter in 2019.
The fourth-quarter net profit was higher than the average forecast of 1.815 billion riyals from three analysts, according to Refinitiv data.
SABIC said the non-recurring gains in the fourth quarter were 450 million riyals, primarily due to the adjustments to certain impairment provisions. The company also saw higher sales volume and lower average cost of sales during the quarter.
"The fourth quarter benefited from sustained economic recovery, which translated into a healthier demand for our products," said SABIC CEO Yousef al-Benyan in a statement. ($1 = 3.7508 riyals)
(Reporting by Saeed Azhar; Editing by Sam Holmes) ((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters Messaging: firstname.lastname@example.org))