SABIC today reported its earnings for the third quarter of 2023. The company’s revenue for the third quarter amounted to SAR 35.98 billion [$ 9.59 billion], an increase of 6% versus the previous quarter, and a year-on-year decrease of 17%.
Highest EBITDA achieved during 2023 with improved EBITDA margin 16%. In addition, the income from operations (EBIT) for the third quarter amounted to SAR 1.68 billion [$0.45 billion], an increase of 2% versus the previous quarter, and a year-on-year decrease of 50%.
Net loss during the third quarter totaled SAR 2.88 billion [$ 0.77 billion], a decrease versus net income of SAR 1.18 billion [$ 0.31 billion] in the prior quarter.
Commenting on the third quarter 2023 results, Eng. Abdulrahman Al-Fageeh, SABIC CEO, today said, “From its central position in the value chains of countless products, the chemical industry is bearing the weight of a weak global economy. However, once consumer demand re-establishes itself, in addition to the company efforts in cost optimization, it will lift the industry. And when that happens, SABIC will be ready to seize business opportunities as an industry leader in chemicals.”
SABIC took a major step during the third quarter of the year in preparation for the realization of its vision of being the preferred world leader in chemicals. It announced the acquisition of all shares of its Hadeed affiliate by the Public Investment Fund in a transaction aimed at strengthening the capabilities of the steel industry in the Kingdom, thus Hadeed divestment will enable us to focus on our strategic business portfolio and achieving the goals of Saudi Vision 2030.
In addition, SABIC took some steps during the third quarter to shrink the carbon footprint of its products and push forward the advanced recycling of plastics. It now offers NORYLTM resin grades made from feedstock containing either recycled post-consumer waste or renewable biomass. In addition, in co-operation with Aramco and TotalEnergies, SABIC successfully manufactured the Middle East’s first certified circular polymers from the pyrolysis oil derived from the chemical recycling of plastic waste. Additionally, as part of its Corporate Social Responsibility program, SABIC explored other opportunities for plastic-waste recycling as part of the Saudi Green Initiative.