RIYADH: Saudi Basic Industries Corp., a petrochemical company, declared a net profit of SR1 billion ($266.27 million) for the third quarter of 2024. This is a significant increase over the SR2.87 billion loss for the same time the previous year. SABIC credited a number of variables for its successful outcomes, including an increase in operating income of SR797 million, which was supported by a greater gross profit margin that was counterbalanced by increased operating expenses.
Despite a minor decline in sales volume, the company’s revenue increased 3% year over year to SR36.88 billion, mostly due to higher average selling prices. The company also profited from favourable currency exchange fluctuations and revenues from the sale of its Functional Forms business. The London Stock Exchange Group claims that the third-quarter profit fell SR1.6 billion short of analyst projections, as reported by Reuters.
One significant element was the SR3.3 billion in decreased losses from terminated operations for SABIC, which were mostly the result of a fair value reevaluation of the Saudi Iron and Steel Co., also known as Hadeed. Hadeed’s designation as a stopped operation will last until the sale is finalised, as the company previously disclosed. However, softer selling prices and higher feedstock costs resulted in a lower gross profit of SR194 million, which caused net profit to drop from SR2.18 billion in the second quarter of 2024.
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