SABIC posts Q2 loss of $586.6 mln, third straight quarterly loss

Credit: REUTERS/FAISAL AL NASSER

Saudi Basic Industries Corp, the world's fourth-biggest petrochemicals firm, reported a net loss of 2.2 billion riyals ($586.6 million) in the second quarter, its third straight quarterly loss, on impairments and a drop in sales.

RIYADH, Aug 6 (Reuters) - Saudi Basic Industries Corp 2010.SE, the world's fourth-biggest petrochemicals firm, reported a net loss of 2.2 billion riyals ($586.6 million) in the second quarter, its third straight quarterly loss, on impairments and a drop in sales.

SABIC cited 1.18 billion riyals in impairments on capital assets and lower average selling prices and sales volumes for the loss.

The loss compared to a net profit of 2.03 billion riyals a year earlier and widened from a loss of 1.05 billion riyals in the first quarter.

Analysts had expected SABIC to post a loss of 40.85 million, a mean estimate of four analysts based on Refinitiv Eikon data showed.

Saudi oil producer Aramco 2222.SE completed its purchase of a 70% stake in SABIC for $69.1 billion in June and extended the payment period by three years to 2028, providing a cushion against weak oil prices.

($1 = 3.7503 riyals)

(Reporting by Marwa Rashad and Saeed Azhar; editing by Jason Neely)

((Saeed.Azhar@thomsonreuters.com; +971 44536787; Reuters Messaging: saeed.azhar.reuters.com@reuters.net))

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