Saudi Basic Industries Corp (SABIC) , a chemical manufacturing company, posted 18 per cent sales decrease to SR 30.8 billion (Saudi Riyals) in first quarter (Q1) FY20 ended on March 31, 2020 compared to sales of SR 37.3 billion in same period the prior year. Net income reported a loss of SR 676.2 million compared to income of SR 4.9 billion in Q1 FY19.
“Product prices remain challenged with no improvement in the supply/demand balance for key products in the first quarter of 2020 compared to the previous quarter. This was further aggravated by Covid-19 becoming a global pandemic and the significant decline in oil price towards the end of the quarter,” Yousef Abdullah Al-Benyan, vice chairman and chief executive officer of SABIC, said in a press release.
Gross profit for the quarter were SR 5.7 billion (Q1 FY19: SR 11.3 billion). Income from operations were SR 476.2 million (Q1 FY19: SR 6.1 billion).
Sales of Retro-Chemicals & Specialities segment were SR 26.5 billion (SR 32.3 billion). Agri nutrients segment sales were SE 1.4 billion (SR 1.8 billion). Hadeed segment sales were SR 2.7 billion (SR 3.2 billion).
Regionally, sales in KSA (Kingdom of Saudi Arabia) were SR 5.2 billion (SR 6.4 billion), China SR 4.8 billion (SR 6.2 billion), Rest of Asia SR 7.0 billion (SR 8.2 billion), Europe 7.1 billion (8.7 billion), Americas 2.8 billion (3.2 billion) and Others 3.7 billion (4.4 billion).
SABIC in its earnings statement said that despite business improvements recently in China, elsewhere the company anticipates negative impacts on demand and market sentiment in the second quarter of 2020 and potentially later in the year.
In response to the Covid-19 outbreak, SABIC has focused efforts towards three priorities: protecting its people & communities, ensuring continued operation as an essential industry, and securing the supply of basic and critical goods.
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