Income from Operations
SABIC’s income from operations for 2020 was SAR 4,574 million compared to SAR 11,523 million in 2019; a decrease of SAR 6,949 million or 60%. The decrease was mainly attributable to the decrease in gross profit margin by 10%. In addition, the share of results of integral joint ventures decreased by SAR 725 million or 42% compared to 2019.
Cost of sales for 2020 were SAR 94,078 million compared to SAR 105,991 million in 2019, a decrease of SAR 11,913 million or 11%. This was primarily due to the decrease in feedstock prices (Naptha, Propane and Butane by 40%, 19% and 18% respectively).
Selling, general and administrative expenses for 2020 were SAR 19,306 million compared to SAR 19,616 million in 2019; a decrease of SAR 309 million or 2% which mainly due to the decrease in costs.