Sabic, the region’s biggest petrochemicals firm, reported its third consecutive quarterly loss on the back of lower selling prices for its products and impairment provisions on certain assets.
The company registered a net loss of 2.22 billion Saudi riyals (Dh2.17bn) for the second quarter of 2020, compared with a profit of 2bn riyals for the same period last year, Sabic said in a filing to the Tadawul exchange, where its shares trade.
The company declared impairment provisions of 1.18bn riyals related to certain capital assets, including a polymers plant in Spain, which it said had an impact on its profits.
The company took a significant hit in the second quarter, with the business picking up in July and August, said chief executive Yousef Al Benyan. Average petrochemical prices had fell 27 per cent year-on-year in the second quarter and 18 per cent from first-quarter levels.
"The future of demand is driven by uncertainties in the energy market. Market conditions are going to put pressure on the chemical industry for the remainder of this year," he told an earnings briefing.
Saudi Aramco, which produces and sells oil on behalf of the kingdom completed acquisition of a 70 per cent interest in Sabic in June. The state-backed company acquired the stake worth $69.1bn from the sovereign Public Investment Fund.
Following Aramco’s acquisition of the shares, Sabic was “retrospectively” reassigning its control over investments related to its affilates, Saudi Petrochemical Company (Sadaf) and Arrrazi methanol plant.
In May, Sabic merged Sadaf and Petrokemya to drive "efficiency and competitiveness” of its operations.
"Sabic has performed retrospective control reassessment over Sadaf and Arrazi prior to the acquisitions of additional shares and classified them as joint arrangements,” it said in a note to the Tadawul exchange.
The company’s sales revenue declined 29.46 per cent to 24.62bn riyals for the second quarter on a year-on-year basis.
Aramco acquired Sabic as part of its larger plans to increase global refining capacity from 4.9 million to 8 million-to-10 million barrels per day by 2030. Around 2m bpd to 3m bpd of the output will be converted into petrochemical products. This downstream portfolio will consume significant quantities of Saudi Arabia's crude oil.
Expert input
If you had all the money in the world, what’s the one sneaker you would buy or create?
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Indoor cricket in a nutshell
Indoor Cricket World Cup – Sep 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
THE SIXTH SENSE
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Director: M. Night Shyamalan
Rating: 5/5
Zayed Sustainability Prize
The Specs
Price, base Dh379,000
Engine 2.9-litre, twin-turbo V6
Gearbox eight-speed automatic
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Torque 443Nm
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
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The specs: 2019 Aston Martin DBS Superleggera
Price, base: Dh1.2 million
Engine: 5.2-litre twin-turbo V12
Transmission: Eight-speed automatic
Power: 725hp @ 6,500pm
Torque: 900Nm @ 1,800rpm
Fuel economy, combined: 12.3L / 100km (estimate)
THE SPECS
Touareg Highline
Engine: 3.0-litre, V6
Transmission: 8-speed automatic
Power: 340hp
Torque: 450Nm
Price: Dh239,312
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Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
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- Insurance coverage for optical, dental, alternative medicine, cancer screening
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Scores
Scotland 54-17 Fiji
England 15-16 New Zealand
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
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The specs
Engine: 6.2-litre supercharged V8
Power: 712hp at 6,100rpm
Torque: 881Nm at 4,800rpm
Transmission: 8-speed auto
Fuel consumption: 19.6 l/100km
Price: Dh380,000
On sale: now
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
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RACECARD
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7.45pm UAE 1000 Guineas – Listed (TB) $150,000 (D) 1,600m
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8.55pm Downtown Dubai Cup – Rated Conditions (TB) $80,000 (D) 1,400m
9.30pm Zabeel Mile – Group 2 (TB) $180,000 (T) 1,600m
10.05pm Dubai Sprint – Listed (TB) $100,000 (T) 1,200m