SABIC posts highest quarterly losses of Saudi petrochem sector

Riyadh – Mubasher: Combined losses of SAR 2.4 billion were achieved by Saudi listed petrochemical companies during the second quarter (Q2) of 2020 amid tumbling oil prices and setbacks from the coronavirus pandemic.

This is compared to profits of SAR 3.38 billion generated in the year-ago quarter, according to data collected by Mubasher based on the companies’ financial results disclosed to the Saudi Stock Exchange (Tadawul).

The Saudi Basic Industries Corporation (SABIC) accounted for 91% of overall losses after posting SAR 2.22 billion worth of losses in Q2-20, against net profits of SAR 2.03 billion in Q2-19.

Saudi Kayan Petrochemical Company came in second place with SAR 398.19 million in net losses during the April-June period, up by 45.78% when compared to SAR 273.13 million in the prior-year period.

The National Petrochemical Company (Petrochem) followed with losses of SAR 189 million during the current-year period, against net profits of SAR 183 million in the 2019 period.

On the other hand, the Saudi Arabian Fertilizer Company (SAFCO) reported a marginal decline in profit by 5.42% during the three-month period ended 30 June at SAR 359.8 million.

Alujain Holding Corp turned profitable in Q2-20, gaining SAR 182.98 million in net profits, against SAR 71.01 million in losses over Q2-19.

In the first half (H1) of 2020, Saudi petrochemical firms saw net losses of SAR 3.83 billion, versus net profits of SAR 6.5 billion during H1-19.

In July, Al Rajhi Capital expected Saudi petrochemical companies to post a decline in Q2-20 combined profits, given the low petrochemical prices and the plunge in sales.