Saudi chemical maker SABIC reports another surprise loss in Q2

DUBAI: Saudi chemicals company SABIC reported another surprise quarterly loss on Sunday, after deciding to shut a cracker in Britain amid a restructuring of its business during an industry slowdown.

SABIC reported a net loss of 4.07 billion riyals ($1.09 billion) for the three months to June 30, missing analysts’ expectations of a profit of 504 million riyals, LSEG data showed.

Shares declined 1.6% at the open to 53.8 riyals a piece.

SABIC, 70% owned by oil major Saudi Aramco, has posted three consecutive losses in quarterly earnings as the chemicals industry grapples with weak demand that has weighed on sales.

The company attributed the latest loss mainly to a 3.78 billion riyals impairment related to the cracker closure, as well as impairment charges for its investment in Swiss speciality chemicals maker Clariant due to its share price decline.

In another filing on Sunday, the company proposed a dividend of 1.5 riyals per share for the first half of the year.

SABIC shares are down almost 19% this year on the Saudi exchange.

The company said last month it was studying strategic options for its National Industrial Gases Company, including an initial public offering, amid a broad review of its business.

SABIC said in a statement the move was in line with its portfolio optimisation and core business focus strategy, adding that an IPO of GAS would be aimed at improving the group’s “financial position and the value added for shareholders”.