The world's fourth-biggest petrochemicals firm posted a net loss of $191.94mn after tax, mainly due to lower average selling prices.SABIC swung to the loss from a profit of $859mn during the same quarter a year earlier, the company said in a bourse filing.
The loss was also due to impairment provision at its affiliate Arabian Industrial Fibers Co (Ibn Rushd), it said."Despite an uptick in Brent oil prices in the fourth quarter, the results were negatively impacted by a further decline in petrochemical prices driven by oversupply in the key products and slowing global growth coupled with seasonal impacts,” SABIC said in a statement.
For the whole of 2019, SABIC net profit dropped a massive 74%, the company said, also citing lower prices and allocation of emergency provisions."The petrochemical industry was negatively impacted in 2019 by additional new supply in key products coming on-stream coupled with a moderation in global growth compared to 2018," SABIC CEO Yousef Al-Benyan said in a statement.
EU antitrust regulators will decide by 27 February whether to clear state energy firm Saudi Aramco's $69.1bn acquisition of SABIC, according to a European Commission filing.
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