Saudi Basic Industries Corp. announces its Interim Financial Results for the Period Ending on 2023-06-30 ( Six Months )

Saudi Basic Industries Corp. announces its Interim Financial Results for the Period Ending on 2023-06-30 ( Six Months )

All figures are in (Billions) Saudi Arabia, Riyals

Element List

Current Period

Similar period for previous year

%Change

Sales/Revenue

76.86

108.62

-29.24

Gross Profit (Loss)

11.06

28.57

-61.29

Operational Profit (Loss)

3.12

19.72

-84.18

Net Profit (Loss) after Zakat and Tax

1.84

14.4

-87.22

Total Comprehensive Income

2.13

14.02

-84.81

Total Share Holders Equity (after Deducting Minority Equity)

176.78

180.66

-2.15

Profit (Loss) per Share

0.61

4.8

All figures are in (Billions) Saudi Arabia, Riyals

Element List

Explanation

The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is

The global economy is continuously slowing down as a result of tightening monetary policies to confront inflation, leading to weaker demand and a decrease in the average selling prices of the company's products as well as lower quantities sold.

As a result, there was a sharp decline in gross profit and EBIT, despite lower feedstock cost and lower selling and distribution expenses.

Year over year, SABIC's share in results of non-integral joint ventures and associated companies decreased substantially.

The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is

SABIC’s target markets were subject to a continuous decline in demand and an increase in supply for most of the company's products, leading to lower average selling prices, which was partially offset by lower feedstock cost.

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