Saudi Basic Industries Corp.’s net profit Sabic, one of the world’s largest chemical producers, collapsed by 62% in the first quarter of 2024 as weak demand and high operating costs continued to put pressure on the petrochemical industry. writes about this Bloomberg Referring to the company’s report.
According to the Saudi company’s report published on Wednesday, its net profit in the first three months of the year was only 250 million riyals ($67 million). This is well below the average analyst estimate of 556 million riyals.
Sabic’s financial results only underscore the ongoing challenges for petrochemical giants. In addition to stagnant demand, manufacturers are also grappling with rising operating costs that are eating into their margins.
That’s why last month Sabic announced that it would close one of its divisions in the Netherlands due to unfavorable market conditions. Exxon Mobil also decided to restrict some of its operations in France.
Giants such as BASF SE and Sinopec have recently reported weak financial indicators in the chemicals segment. But Dow is still hoping for a recovery in demand soon.
Before this, US oil giants came together increase Production despite pressure on OPEC+
Formerly Shell designed Leave the London Stock Exchange.