SABIC was founded in 1977, and the oil giant Saudi Aramco has owned 70% of its shares since 2020. The company’s profits are closely linked to the growth of the global economy, as its products, such as plastics, fertilizers, and others, are used in construction activities, agriculture, packaging, consumer goods, cars, and others.
The company – one of the largest petrochemical companies in the world – recorded net losses of about 2.77 billion Riyals ($738 million) in the year 2023, compared to a net profit of 16.53 billion Riyals in the same period last year.
SABIC said that it incurred non-cash losses amounting to 2.93 billion Riyals as a result of reevaluating the investment in its subsidiary Hadid Company.
Last September, SABIC announced the signing of an agreement with the Public Investment Fund (the Saudi sovereign fund) to acquire its stake in the Saudi Iron and Steel Company (Hadeed), which it wholly owns.
The acquisition deal is expected to be completed before the end of the first quarter of 2024, according to a previous statement.
The company’s sales in 2023 declined by 22.69% to 141.54 billion Riyals, compared to 183.08 billion Riyals in the same period last year, according to SABIC.
Quarterly results
The company recorded net losses of about 1.73 billion Riyals in the fourth quarter of 2023, compared to a net profit of about 290 million Riyals in the same quarter of 2022.
