Income from Operations
SABIC’s income from operations for 2019 was SAR 14,833 million, a decrease of SAR 21,447 million or 59%, compared to SAR 36,280 million in 2018. The decrease was mainly attributable to lower average sales prices partially offset by lower cost of goods sold by SAR 7,070 million or 6%, lower general and administrative expenses by SAR 484 million or 4%, and lower selling and distribution expenses by SAR 390 million or 4% compared to 2018.
Cost of sales for 2019 was SAR 104,217 million, a decrease of SAR 7,070 million or 6%, compared to SAR 111,287 million in 2018. The decrease was mainly resulted from the decrease in feedstock prices, partially offset by impairment charges amounted to of SAR 3,669 million.
Selling, general and administrative expenses for 2019 were SAR 20,687 million, a decrease of SAR 874 million compared to SAR 21,561 million in 2018. The decrease was mainly resulted from the continued focus on our cost structure.