SABIC announced its financial results for Q1 2020 with revenue of SAR 30.83 billion ($ 8.22 billion). The revenue represents a decrease of 6 percent compared to Q4 2019.
In Q1 2020, sales volumes decreased by 4 percent and average sales prices by 2 percent compared to Q4 2019. A decline in Brent price of more than 20 percent drove a decrease in feedstock prices. Both Japanese and European naphtha prices decreased by more than 18 percent in Q1 2020, quarter-over-quarter.
In 2020, the global GDP growth rate is expected to be negative as the GDP of many countries is expected to contract from 2019 primarily due to the negative impacts of COVID-19.
A deterioration in other parts of the world influenced by lockdowns will impact demand and market sentiment in Q2 2020 and potentially later in the year while some improvement seen in business activity in China.
Due to a contraction of global GDP caused by lockdowns to stop the spread of coronavirus and lengthy supply, SABIC anticipates further strain in chemicals prices and margins in Q2, and potentially longer.
