Logo of Saudi Basic Industries Corporation (SABIC)
Saudi Basic Industries Corporation (SABIC) announced that its affiliates in Saudi Arabia received an official notification from Saudi Arabian Oil Co. (Saudi Aramco) on a hike in feedstock prices.
Accordingly, the company's annual cost of sales is expected to rise by nearly 1.7%, as per the latest audited annual financial statements, the petrochemicals major said in a statement to Tadawul.
This impact will appear starting from the first quarter of 2024.
SABIC continues to enhance its business efficiency and development sustainably, as well as invest in innovation and development of production technologies and products. The company also intends to maximize the advantages of the competitive infrastructure available in the Kingdom to achieve its strategic objectives.
Meanwhile, SABIC Agri-Nutrients Co. estimated the potential financial impact at around 3.8% of its annual sales costs based on the latest audited annual financials.
In a separate statement to Tadawul, Yanbu National Petrochemical Co. (Yansab) expected a 2.8% rise in its annual cost of sales, based on its recent audited financial statement, on higher feedstock prices.
Similarly, Saudi Kayan Petrochemical Co. also predicted an increase of nearly 1.2% in its annual cost of sales, based on its recent audited financial statement. The financial impact will likely show in Q1 2024.
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