Saudi chemicals maker SABIC posts profit as demand revives

Saudi chemicals maker SABIC posts profit as demand revives

Saudi Basic Industries Corp., the chemical maker in which Saudi Aramco holds a majority stake, returned to profit in the third quarter amid signs that demand is recovering from the impact of the coronavirus.

The company, known as 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.

Revenue in the three months to the end of September fell 11 per cent to SAR29.3bn.

SABIC said 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