Saudi petrochemicals giant Sabic posted a first quarter loss of $320mn amid a weak market characterized by continued oversupply. This marked Sabic’s second consecutive quarterly loss, the firm’s worst spell since the end of 2023, although it attributes this to “one-time restructuring costs that position us for long term value creation.”
The company benefits from advantaged feedstock costs domestically, although Saudi Arabia has been steadily increasing prices recently. In January, Sabic announced that it had been notified of increased feedstock prices by Saudi Aramco, with “the expected financial impact of the feedstock prices estimated at an increase equivalent to approximately 1% of the company’s annual cost.” Key feedstocks include natural gas, ethane, naphtha and propane. (CONTINUED - 721 WORDS)
