Saudi producers report weaker financial results for Q3
SABIC’s net profit declined by 9.4% on a quarterly basis to SAR5.6 billion ($1.49 billion) in the July-September period. The company’s reduced profit was attributed to lower product sales prices, although SABIC’s profits still beat analysts’ forecasts calling for a profit of SAR4.36 billion owing to cost-cutting, according to a survey conducted by Reuters.
The Yanbu National Petrochemical Co (Yansab), a subsidiary of SABIC, also reported weaker financial results for the third quarter due to lower average sales prices for all products. Yansab’s net profit slumped 56.4% year on year to 301.7 million riyals ($80.5 million).
Tasnee (National Industrialization Co) posted net losses for a second consecutive quarter. The company reported a net loss of 296.3 million riyals ($79 million) in the third quarter compared with the same period of 2014. The company cited lower sales prices and reduced sales volumes as the main reason behind their financial loss.
Saudi Kayan Petrochemicals, an affiliate of SABIC, also posted a net loss of 13.8 million riyals ($3.7 million) in the third quarter after recording a net profit of 66.9 million riyals ($17.8 million) in the same period of 2014. The company’s quarterly loss was led by reduced production and sales volumes as well as lower sales prices.
In contrast, Sahara Petrochemical’s third-quarter earnings soared 608% as their financial results for the previous year were hit by an unplanned shutdown at one of their plants.
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