However, it is worth noting that this net profit fell below the average analyst expectation of SAR 1.6 billion, as indicated by data from the London Stock Exchange Group (LSEG).
On a quarter-over-quarter basis, the profit declined by 54%, attributed to a 3% decrease in gross profit, which amounted to SAR 194 million, driven by lower selling prices and increased feedstock costs, according to the company.
In Q3 2024, SABIC's revenue rose by 2.5% year-on-year to SAR 36.88 billion, primarily due to an increase in sales volume, although this was partially offset by a slight decline in average selling prices.
The company has forecasted capital expenditures (CAPEX) between $3.3 billion and $3.9 billion for 2024.
Anoop Fernandes, a senior analyst at SICO in Bahrain, noted that there were no significant surprises in SABIC's quarterly results.
“It remains a cost-competitive entity compared to its global counterparts, allowing it to sustain profits. However, the primary challenge lies in the weak demand for petrochemicals both in China and worldwide; we have observed destocking trends with no indications of a reversal,” he stated.
“Additionally, non-recurring items, such as the loss from the fair value assessment related to the Alba stake sale, played a role in the earnings falling short of consensus expectations.”