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Saudi Basic Industries Corporation (SABIC) announces its Interim Financial Results for the Period Ending on 2023-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 35.98 | 43.32 | -16.94 | 34.1 | 5.51 |
| Gross Profit (Loss) | 6.34 | 8.18 | -22.49 | 5.51 | 15.06 |
| Operational Profit (Loss) | 1.68 | 3.38 | -50.3 | 1.64 | 2.44 |
| Net Profit (Loss) after Zakat and Tax | -2.88 | 1.84 | - | 1.18 | - |
| Total Comprehensive Income | -2.88 | 2.22 | - | 1.2 | - |
| All figures are in (Billions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 106.51 | 143.54 | -25.8 |
| Gross Profit (Loss) | 17.5 | 35.61 | -50.86 |
| Operational Profit (Loss) | 5.08 | 22.4 | -77.32 |
| Net Profit (Loss) after Zakat and Tax | -1.04 | 16.24 | - |
| Total Comprehensive Income | -0.75 | 16.24 | - |
| Total Share Holders Equity (after Deducting Minority Equity) | 173.9 | 182.88 | -4.91 |
| Profit (Loss) per Share | -0.35 | 5.41 | |
| All figures are in (Billions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | The company incurred a net loss of 2.88 billion Saudi Riyals in the current quarter compared to net profit of 1.84 Billion Saudi Riyals in the same quarter of the previous year.
It is worth noting that there are non-cash losses as a result of the Public Investment Fund’s acquisition of SABIC’s entire stake in the Saudi Iron and Steel Company (Hadeed), which was previously announced, amounting to 2.93 Billion Saudi Riyals. Note that this deal will enable SABIC to focus on its strategic business portfolio, to maintain its leadership competitiveness and prepare the company for a new era of growth in the field of petrochemicals. With a robust sales volume performance combined with cost containment efforts, the company maintained a positive momentum in its continuing operations leading to a net income of 536 Million Saudi Riyals in the current quarter. In the same quarter of prior year, the company generated a net income from continuing operation of 1.64 Billion Saudi Riyals, a decrease of 67%. This is due to the following reasons:
• The stagnation in global demand for chemicals, which led to a decrease in average selling prices, and thus a decrease in the value of sales by 7.3 Billion Saudi riyals despite the increase in the quantities sold. • A decrease in SABIC's share in the results of joint ventures and associated companies, which amounted to 919 Million Saudi Riyals. This mainly attributable to the decrease in their sales quantity and lower selling prices. • Recording an impairment charge in certain capital assets, which amounted to 255 Million Saudi Riyals as part of the restructuring program in Europe to improve the return on investment. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is | The company incurred a net loss of 2.88 Billion Saudi Riyals in the current quarter compared to net profit of 1.18 Billion Saudi Riyals in the previous quarter. It is worth noting that there are non-cash losses as a result of the Public Investment Fund’s acquisition of SABIC’s entire stake in the Saudi Iron and Steel Company (Hadeed), which was previously announced, amounting to 2.93 Billion Saudi Riyals. Note that this deal will enable SABIC to focus on its strategic business portfolio, to maintain its leadership competitiveness and prepare the company for a new era of growth in the field of petrochemicals. With a robust sales volume performance combined with cost containment efforts, the company maintained a positive momentum in its continuing operations leading to a net income of 536 Million Saudi Riyals in the current quarter. In the prior quarter, the company generated a net income from continuing operation of 1.45 Billion Saudi Riyals, a decrease of 63%. This is due to the following reasons: • A decrease in SABIC's share in the results of joint ventures and associated companies, which amounted to 669 Million Saudi Riyals. This was mainly attributable to the decrease in their sales quantity and lower selling prices. • Recording an impairment charge in certain capital assets, which amounted to 255 Million Saudi Riyals as part of the restructuring program in Europe to improve the return on investment. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | The company incurred a net loss of 1.04 Billion Saudi Riyals in the period compared to net profit of 16.24 Billion Saudi Riyals in the same period of last year. It is worth noting that there are non-cash losses as a result of the Public Investment Fund’s acquisition of SABIC’s entire stake in the Saudi Iron and Steel Company (Hadeed), which was previously announced, amounting to 2.93 Billion Saudi Riyals. Note that this deal will enable SABIC to focus on its strategic business portfolio, to maintain its leadership competitiveness and prepare the company for a new era of growth in the field of petrochemicals. The company achieved a net income from continuing operations of 2.78 Billion Saudi Riyals in the current period compared to the same period of the previous year of 15.44 Billion Saudi Riyals, a decrease of 82%. This is due to the following reasons: • The stagnation in global demand for chemicals, which led to a decrease in average selling prices, and thus a decrease in the value of sales by 37 Billion Saudi Riyals. • A decrease in SABIC's share in the results of joint ventures and associated companies, which amounted to 3.64 Billion Saudi Riyals. This was mainly attributable to the decrease in their sales quantity and lower selling prices. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Reclassification of Comparison Items | Certain prior period figures have been re-classified to conform with the current period presentation. Hadeed’s earnings are being disclosed separately as results from discontinued operations in the interim consolidated financial statements, in compliance with IFRS 5 “Non-current Assets Held for Sale and Discontinued Operations”. |
| Additional Information | Attached 3Q 2023 earnings release and presentation in addition to an update on SABIC ESG |
| Attached Documents |  |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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