SABIC posts Q3 loss of $768 million as petrochemical market faces headwinds

SABIC, a major petrochemical company, reported a 17% decline in third-quarter revenues and a net loss of 2.88 billion riyals ($768 million). This financial setback was primarily due to impairments and provisions related to the Saudi Iron and Steel Company (Hadeed) after SABIC's stake was acquired by the Public Investment Fund. Despite a quarterly increase in revenues, SABIC cited weak global demand and petrochemical oversupply, with a 5% decrease in average selling prices. SABIC aims to manage capital expenditures carefully and expects them to range between $3.5 billion to $3.8 billion for 2023. Slower recovery in China and declining demand in Europe have raised concerns for the global petrochemical market.