Riyadh – Mubasher: The board members of Saudi Basic Industries Corporation (SABIC) turned to loss during the financial year 2023, reporting a net loss of SAR 2.77 billion, compared to a net profit of SAR 16.53 billion a year earlier.
Revenues dropped 22.69% year-on-year (YoY) to SAR 141.54 billion last year from SAR 183.08 billion, according to the annual financial results.
The company recorded a loss per share of SAR 0.92 in 2023, versus earnings per share (EPS) of SAR 5.51 the year before.
Fourth Quarter Results
During the fourth quarter (Q4) of 2023, SABIC’s net loss declined by 40% to SAR 1.73 billion from SAR 2.88 billion in Q3.
Revenues inched lower by 3% to SAR 35.03 billion in the three-month period that ended on 31 December 2023 from SAR 35.98 billion in the previous quarter.
Abdulrahman Al-Fageeh, CEO of SABIC, said: “The petrochemical industry navigates a challenging operating environment – underwhelming demand within our target markets led to lower year-end product prices and there remains considerable uncertainty heading into the first quarter of 2024.”
“SABIC has undertaken a comprehensive portfolio review and identified the pathway to sustained value creation. The announced divestment of Hadeed is proceeding as planned – this optimization of internal resources will enhance our core focus on petrochemicals,” Al-Fageeh added.
The top executive stated: “We strive to maintain dividend distributions for our shareholders while working to ensure that this commitment does not compromise our robust balance sheet.”
2024 Outlook
SABIC announced that it will continue its focus on executing operational excellence programs, delivering on carbon neutrality targets, and transforming the business to maximize returns while addressing market challenges.
The company unveiled investments ranging between $4 to $5 billion for 2024.
It is worth noting that Moody's Investors Service has affirmed the 'A1' ratings of SABIC, along with other Saudi companies.
SABIC shifted to net losses after Zakat and tax worth SAR 1.04 billion during the first nine months (9M) of 2023, against net profits of SAR 16.24 billion in 9M-22.
