Sabic of Saudi Arabia fell to its lowest level in 10 years

Saudi Basic Industries Corp. (SABIC) recorded a second-quarter loss this year, its lowest level since 2009, due to lower demand for chemicals and plastics.

"SABIC's net profit fell to 2.12 billion Saudi Riyals ($ 565 million), up from 6.7 billion Riyals in the same quarter of last year," said Bloomberg as the leading producer. petrochemical industry in the Middle East. Five badysts estimated an average of 3.73 billion riyals for the benefit of SABIC.

"While lower petrochemical prices have negatively impacted Sabic's results in the second quarter, operating performance remains strong and SABIC remains optimistic about the long-term fundamentals of the industry and continues to invest for growth," the report said. General Manager of Sabic, Yousuf Abdullah Al Bunyan.

The company said its second-quarter sales had fallen to 35.87 billion riyals, compared to 43.28 billion riyals in the same period last year, as well as to 4.834 billion rials. , against 10.83 billion riyals, according to the German agency.

SABIC stated that the new capacity of the main production lines, which put pressure on SABIC's prices and margin on its products in the first half of 2019, should continue to affect the company's profits in the second half of the year. the same year.

The market value of SABIC, a company listed on the Saudi stock market and the fourth largest petrochemical company in the world, is 385.2 billion riyals ($ 103 billion).

The Saudi government and private companies have recently experienced a decline in profits, along with the measures taken by the new Crown Prince Mohammed bin Salman, whom observers have described as random.