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Bloomberg
Saudi Basic Industries Corp, the chemical maker in which Saudi Aramco holds a majority stake, returned to profit in the third quarter amid signs that demand is recovering from the impact of the coronavirus.
The company, known as Sabic, said third-quarter profit was 1.09 billion riyals ($290 million) compared with 740 million riyals in the same period last year. Profit rises mainly due to the reversal of 690 million riyals ($184 million) of impairments associated with Clariant AG, in which Sabic holds a 31.5% stake.
Sabic said it benefited from a rebounding world economy but remained cautious on the outlook. Petrochemicals prices have picked up due to higher crude prices and stronger demand after the initial wave of virus-related lockdowns in the second quarter, Chief Executive Officer Yousef Al-Benyan said in an online briefing. “Still, it’s not clear yet on the impact of the second wave, and we are assessing the impacts of this on the global economy,’ he said.
“Even without Covid-19 impact, supply still exceeds demand for our key products, which will continue to pressure product prices and margins for the foreseeable future,†the company said in a statement.
“Even without Covid-19 impact, supply still exceeds demand for our key products, which will continue to pressure product prices and margins for the foreseeable future,†the company said in a statement.
Aramco took control of Sabic earlier this year, buying a 70% stake from the kingdom’s sovereign wealth fund for $69 billion. The deal was part of the state energy firm’s plan to expand its downstream business and diversify from oil into higher-value chemicals.