Media: Saudi’s SABIC posts losses for Q4 2024, missing profit expectations
Market analysts attributed the downturn to weakened international demand and elevated feedstock costs, which continued to erode profitability across the industry. The company also pointed to a glut in global ethylene capacity
Saudi petrochemicals major SABIC posted weaker-than-expected earnings for Q4 2024, underscoring the persistent margin pressures weighing on the global petrochemical sector, Reuters reported.
The company recorded a net loss of 1.89 billion riyals ($504 million) for the quarter, widening from a 1.73-billion-riyal loss in Q4 2023 and sharply missing analyst projections of a profit exceeding 1 billion riyals.
Market analysts attributed the downturn to weakened international demand and elevated feedstock costs, which continued to erode profitability across the industry. The company also pointed to a glut in global ethylene capacity, which it said outstripped the rate of purchases.
Looking ahead, the corporation intends to mitigate further losses by streamlining core assets and divesting non-core operations. This commitment is reflected in its reduction of projected capital investments from $4 - 5 billion in 2024 to $3.5 - 4 billion in the present year.
On a positive note, SABIC delivered a full-year net profit of 1.54 billion riyals in 2024. This marked a recovery from the previous year’s loss of 2.77 billion riyals.
Written by: Derek Yong