Saudi Basic Industries Corp (SABIC) reported an improving profit in the July-September quarter of 2020, thanks to a rise in sales volumes and higher average selling prices. SABIC’s net profits stood at SAR1.09 billion ($291 million) in the quarter, rising from a net loss of SAR2.22 billion ($ 0.59 billion) in the second quarter and SAR740 million a year earlier. The increase followed three straight quarters of losses due to surging impairment charges and a drop in sales.
SABIC,s revenue stood at SAR29.30 billion ($ 7.81 billion) during the July-September quarter, rising by 19% from the previous quarter but decreasing by 11% from a year earlier. EBITDA was at SAR5.67 billion ($ 1.51 billion), increasing by 62% from the prior quarter but declining by 26% from the same quarter last year. Despite returning to profit, SABIC warned that the supply of its key products is still higher than demand, which will continue to put margins and product prices under pressure for the foreseeable future. SABIC’s third-quarter profit beat analysts’ estimates of a SAR775 million net profit.
