The Clap
SABIC’s (2010) profits declined in Q3 2022 by 67% YoY due to high sales, shipping, and distribution costs.
The Deets
SABIC recorded profits in Q3 of SAR 1.84 billion, the lowest since Q3 2020.
The company missed analysts’ expectations, who expected a net profit of SAR 5.14 billion riyals for the quarter.
SABIC
The company was founded in 1977 and is the world’s second-largest petrochemical manufacturer by market capitalization.
Oil behemoth Aramco (2222) holds a 70% stake in the company.
Now What
SABIC expects continued pressure on its profit margins in Q4 2022 due to the slowdown in global economic growth.
So What
The company’s shares fell more than 2% during early trading on the Tadawul on Sunday.