In a 29 January earnings call US firm Dow (30% of Sadara) said it and its 70% JV partner Aramco would begin discussions with lenders to re-profile Sadara’s debt. CFO Howard Ungerleider said that the partners did not have enough cash flow to cover the principle debt. Dow put $500mn into the venture in 2019 to cover its 35% of expenses and expects to do the same this year. Dow also reported “restructuring, goodwill impairment and asset-related charges” of $1.733bn associated with Sadara in 4Q19 (MEES, 31 January).
Aramco’s 9 November 2019 IPO prospectus lists a Sadara completion guarantee for which the termination date is 31 December 2020. As of the end of December 2018, out of a total guaranteed amount of SR30.9bn ($8.3bn), the outstanding amount guaranteed by 65% shareholder Aramco was SR28.8bn ($7.7bn), implying a total outstanding of $11.8bn. (CONTINUED - 133 WORDS)