Saudi Basic Industries Corp (SABIC) reported a net profit of SR1.09 billion [$0.29 billion] was higher than the net loss of SR2.22 billion [$0.59 billion] in the previous quarter and the net profit of SR0.74 billion [$0.20 billion] in the third quarter of 2019. SABIC on Sunday reported its earnings for the third quarter of 2020 with the company's revenue for the third quarter reaching SR29.30 billion ($ .81 billion), representing an increase of 19% compared to the previous quarter and an 11% decrease year-on-year. EBITDA of SR5.67 billion [$1.51 billion], also represented a 62% increase quarter-over-quarter and a 26% decrease year-over-year. Income from operations of SR2.10 billion [$0.56 billion] was higher than the loss from operations of SR1.26 billion [$0.34 billion] in the previous quarter and lower than the profit from operations of SR3.79 billion [$1.01 billion] in the third quarter of 2019. Yousef Al-Benyan, SABIC vice chairman and CEO, attributed SABIC's performance to the company's resilience despite a challenging global economic environment. He said: "The third quarter of 2020 benefited from an improvement in economic activity and an increase in oil price, which translated into higher product prices. "During this time, the strength of our global supply chain continued to allow us to meet the challenges facing the global economy, while our business and operational performance continued to demonstrate resilience. This reflected in higher sales volumes and improved margins in the third quarter of 2020." Al-Benyan added: "Faced with the coronavirus pandemic, the whole world has had to adapt to a "New Normal". We recognize the important role that the chemical industry plays in the recovery of the global economy and our role within that. "As the road to recovery continues, we will remain focused on protecting the health and welfare of our employees, supporting the business requirements of our customers, and collaborating with governments and health authorities around the world." The third quarter also saw SABIC commence the implementation phase of its alignment as the chemical arm of Saudi Aramco, positioning it well to achieve long-term growth and to create and deliver value for its stakeholders. Commenting on the alignment between the two companies, Al Benyan said: "The portfolios of SABIC and Saudi Aramco complement one another, and we are both global organizations with a deep understanding of the worldwide marketplace. "Together, we have embarked on a new journey based on shared values. We share the responsibility of defining the path of both companies and realize the vital importance of creating and delivering value for our shareholders." The reporting period witnessed numerous examples of SABIC's ongoing collaboration with its partners to deliver sustainable solutions. In September, Aramco, SABIC and the Institute of Energy Economics, Japan, demonstrated the successful production of blue ammonia and the world's first shipment of the product from Saudi Arabia to Japan. Another major milestone was reached through a groundbreaking initiative with Spanish energy leader Iberdrola to transform its polycarbonate facility in Cartagena, Spain, into the world's first large-scale chemical production site to run entirely on renewable power. September saw SABIC partner with a leading UK supermarket chain, Tesco, to conduct a trial proving that soft plastic - that would typically go to waste - can be recycled multiple times into new food grade plastic as part of a closed loop recycling system. SABIC's ongoing fight to help the world overcome the COVID-19 pandemic continued playing a central role this quarter as part of the company's global CSR program. To date, the company has delivered 191 global programs in 22 countries, aimed at reaching over 32 million beneficiaries. In Saudi Arabia, SABIC's NUSANED initiative has supported local industry development and SABIC's localization agenda. A recent highlight saw the company sign a SR37 million JV deal to manufacture sustainable wood plastic composites. SABIC has more than 33,000 employees worldwide and operates in around 50 countries. Fostering innovation and a spirit of ingenuity, SABIC has 11,738 global patent filings, and has significant research resources with innovation hubs in five key geographies – USA, Europe, Middle East, South Asia and North Asia. — SG
