#Saudi Chemical Maker Sabic Expects Recovery Following Loss - Bloomberg

Saudi Chemical Maker Sabic Expects Recovery Following Loss - Bloomberg:

Saudi Basic Industries Corp., the chemical maker in which Saudi Arabia’s state oil giant holds a majority stake, sees a better second half after posting its biggest quarterly loss in at least a decade.

The coronavirus pandemic has throttled global demand this year, with widespread lockdowns curbing consumption of plastics, cosmetics and other products made with petrochemicals. But there are signs of recovery already in the second half, Yusef Al-Benyan, chief executive officer of the company known as Sabic, said on a conference call.

“We expect the third and fourth quarters to see slight improvements” in demand, Al-Benyan said. “There will be positive results as we have already seen in July and August with the slight demand improvement, in addition to a slight improvement in prices.”

Saudi Arabia, the biggest oil producer in OPEC, has sought to diversify its economy away from crude sales by building new industries. Expanding chemical output to sell higher-value hydrocarbon products is a key part of that strategy. Saudi Aramco this year bought a 70% stake in Sabic as the world’s biggest oil exporter strives to become one of the largest chemical producers too.