SABIC Faces Losses Due to Reduced Supply
Sabic, the Saudi company, recorded a net loss of 833 million Riyals in the second quarter of the year. Despite an increase in revenues by 2% compared to Bloomberg's expectations, the decline in sales volumes by 33% and narrowing profit margins put pressure on profits. Logistical costs rose, and higher prices were not enough to compensate for this decrease. The shift in performance is mainly attributable to the reduction in quantities sold amid transportation disruptions, with the petrochemical sector still struggling with weak profitability despite rising prices for some products. The results showed that operating performance did not improve significantly, and cash flows were significantly negative, leading to a reduction in dividend payouts to their lowest level in 19 years. Meanwhile, the company continues its expansion investments to enhance its market capabilities in Asia.
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