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.
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Safety 'top priority' for rival hyperloop company
The chief operating officer of Hyperloop Transportation Technologies, Andres de Leon, said his company's hyperloop technology is “ready” and safe.
He said the company prioritised safety throughout its development and, last year, Munich Re, one of the world's largest reinsurance companies, announced it was ready to insure their technology.
“Our levitation, propulsion, and vacuum technology have all been developed [...] over several decades and have been deployed and tested at full scale,” he said in a statement to The National.
“Only once the system has been certified and approved will it move people,” he said.
HyperloopTT has begun designing and engineering processes for its Abu Dhabi projects and hopes to break ground soon.
With no delivery date yet announced, Mr de Leon said timelines had to be considered carefully, as government approval, permits, and regulations could create necessary delays.
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Types of bank fraud
1) Phishing
Fraudsters send an unsolicited email that appears to be from a financial institution or online retailer. The hoax email requests that you provide sensitive information, often by clicking on to a link leading to a fake website.
2) Smishing
The SMS equivalent of phishing. Fraudsters falsify the telephone number through “text spoofing,” so that it appears to be a genuine text from the bank.
3) Vishing
The telephone equivalent of phishing and smishing. Fraudsters may pose as bank staff, police or government officials. They may persuade the consumer to transfer money or divulge personal information.
4) SIM swap
Fraudsters duplicate the SIM of your mobile number without your knowledge or authorisation, allowing them to conduct financial transactions with your bank.
5) Identity theft
Someone illegally obtains your confidential information, through various ways, such as theft of your wallet, bank and utility bill statements, computer intrusion and social networks.
6) Prize scams
Fraudsters claiming to be authorised representatives from well-known organisations (such as Etisalat, du, Dubai Shopping Festival, Expo2020, Lulu Hypermarket etc) contact victims to tell them they have won a cash prize and request them to share confidential banking details to transfer the prize money.
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THE BIO
Ms Davison came to Dubai from Kerala after her marriage in 1996 when she was 21-years-old
Since 2001, Ms Davison has worked at many affordable schools such as Our Own English High School in Sharjah, and The Apple International School and Amled School in Dubai
Favourite Book: The Alchemist
Favourite quote: Failing to prepare is preparing to fail
Favourite place to Travel to: Vienna
Favourite cuisine: Italian food
Favourite Movie : Scent of a Woman
