SABIC profits decreased during the second quarter of 2023
SABIC’s profits declined to 1.8 billion riyals at the end of the first half of 2023, by 87%, compared to profits of 14.4 billion riyals achieved during the same period in 2022.
The company said that the reason for the decline in the quarterly and half-term profits during the current period compared to the same period of the previous year is due to the decrease in the average selling prices of the company’s products and a decrease in the quantities sold due to the continued slowdown in the global economy as a result of the tightening of global monetary policies to confront global inflation and a decrease in the total profit and pre-earnings. Interest and tax deduction (EBIT).
In addition to the decrease in (SABIC) share in the results of non-integrated joint ventures and associate companies since the beginning of the year to date, compared to the previous year, despite the decrease in the cost of feedstock materials, the decrease in selling and distribution expenses, the re-evaluation of the option rights gains related to the joint venture agreements, and the decrease in zakat and taxes expenses.
The company attributed the reason for the increase in profits during the current quarter compared to the previous quarter to the re-evaluation of gains in options rights related to joint venture agreements on the company’s financial results.
The company also stated that shareholders’ equity (after excluding minority rights) at the end of the period amounted to 176.78 billion riyals, compared to 180.66 billion riyals at the end of the same period of the previous year.