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Petrochemicals giant Saudi Basic Industries Corp (Sabic) reported a net loss of SAR 2.8 bn in 2023 against a net income of SAR 16.5 bn a year earlier, according to its earnings release (pdf). Its revenues were down 22.7% y-o-y last year to SAR 141.5 bn.
This could be Sabic’s first ever net loss. As we note in Saudi in the News this morning, Bloomberg has no record of Sabic losing money in a year in data that goes back to the mid-1990s.
Fueling the drop: Sabic —one of the world’s largest petrochemicals companies — attributed the net losses to discontinued operations “driven mainly from the fair valuation of the [steel subsidiary] Hadeed business … and financial performance” last year. Revenues came in lower due to a drop in average selling prices and sold quantities, Sabic said, adding that its sales were hit by a sluggish global demand on petrochemicals.
REMEMBER- Sabic agreed last year to sell its steel subsidiary Hadeed to the Public Investment Fund last year at an enterprise value of SAR 12.5 bn. It said the divestment would allow it to “optimize its portfolio and focus on its core business.” The transaction, which is subject to customary conditions and regulatory approvals, is set to close before the end of this quarter.
A look at Q4: Sabic reported a net loss of SAR 1.7 bn in the fourth quarter of 2023 against a net income of SAR 300 mn in the corresponding quarter a year earlier, according to its earnings release. Its revenues were down 11% y-o-y in the fourth quarter of 2023 to SAR 35 bn.
Highlights of the year: Sabic said it reached a final investment decision to develop a world-scale USD 6.4 bn petrochemical complex in China’s Fujian with China’s Fujian Energy Petrochemical, according to its earnings call presentation (pdf). They broke ground on the project earlier this month. It also announced with China’s Sinopec the start of commercial operations at a new polycarbonate at the Sinopec Sabic Tianjin Petrochemical Co.
CARE-
National Medical Care’s net income rose 42% y-o-y to SAR 241 mn in 2023 on the back of a hike in patient admissions, it said in an earnings release (pdf). Revenues increased 18% y-o-y to SAR 1 .1 bn over the same period. On a quarterly basis,the bottom line grew 14% y-o-y to SAR 63 mn, while its top line was up 19% y-o-y to SAR 300 mn.
