Saudi Basic Industries Corp (Sabic), one of the world’s biggest petrochemical companies, on Thursday (Nov 2) posted an almost 17 per cent fall in third-quarter revenue and a net loss.

Sabic in a filing reported a net loss of 2.88 billion riyals (S$1.04 billion) for the three months to Sept 30, compared with a profit of 1.84 billion riyals a year earlier.

The loss was mainly driven by an impairment charge of 2.93 billion riyals on the fair value of Saudi Iron and Steel Company (Hadeed) after Saudi Arabia’s sovereign wealth fund acquired Sabic’s entire stake in the company.

Sabic’s divestment in Hadeed was agreed to in September, allowing the Saudi petrochemicals giant to “optimise its strategic portfolio and focus on its core business,” it said.

Revenues fell to 35.98 billion riyals from 43.32 billion A year earlier, but was cup almost 6 per cent quarter on quarter.

The global petrochemical market continues to witness weak global demand and an increase in supply for most products, Sabic said. Its average selling price fell 5 per cent quarter on quarter while prices for agri-nutrients products increased by 11 per cent.

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The company said it remains disciplined in managing its capital expenditure, which for 2023 it estimates at US$3.5 billion to US$3.8 billion. REUTERS