Net Income for the year
SABIC net income for 2019 was SAR 5,563 million, a decrease of SAR 15,958 million or 74%, compared to SAR 21,520 in 2018. The decrease was mainly attributable to a lower operating income from operations and the share of loss of associates and joint ventures.
Share of results of associates and joint ventures for 2019 was a loss of SAR (1,595) million compared to a profit of SAR 1,050 million in 2018. This was mainly resulted from an impairment charge for the investment in Clariant AG amounted to of SAR 1,515 million due to the drop in fair value of the investment, in addition to lower results from our joint ventures mainly from SSTPC and other associates resulted due to the lower average sales prices of petrochemical products.
Finance costs, net for 2019 was SAR 1,427 million, which increased by SAR 204 million or 17%, compared to 2018. It is mainly due to the decrease in finance income resulted from the lower income from fixed time deposits.
Zakat expenses for 2019 was SAR 2,100 million, which is lower by SAR 500 million compared to SAR 2,600 million in 2018 due to a lower zakat base and a review of the overall Zakat provision.
Income tax expenses for 2019 was SAR 1,119 million, a decrease of SAR 79 million or 7%, compared to SAR 1,198 in 2018, primarily resulted from the lower profits partially offset by movements in the deferred tax position and uncertain tax provisions.