SABIC, said third-quarter profit was SAR1.09bn ($290m) compared with SAR740m in the same period last year. Profit rose mainly due to the reversal of SAR690m of impairments associated with Clariant AG, in which SABIC holds a 31.5 per cent stake. It benefited from a rebounding world economy but remained cautious on the outlook. Petrochemicals prices have picked up due to higher crude prices and stronger demand after the initial wave of virus-related lockdowns in the second quarter.
The results indicate that SABIC is turning a corner after reporting its biggest quarterly loss in at least a decade between April and June, as the pandemic hit sales of plastics, cosmetics and other petrochemical products. A write-down in the value of some assets also hurt second-quarter profit, and that followed the company’s decision in May to suspend new capital expenditure to protect its balance sheet. Earlier this month, SABIC announced the scaling back of a planned $20bn facility to convert crude directly into chemicals, a sign that efforts to cut costs amid weaker demand for chemicals are affecting investment.