DUBAI: Saudi Basic Industries Corp (SABIC), one of the world’s biggest petrochemical companies, on Thursday posted an almost 17% fall in third-quarter revenue and a net loss.

In a filing, SABIC reported a net loss of 2.88 billion riyals ($768 million) for the three months to Sept. 30, compared with a profit of 1.84 billion riyals a year earlier.

The loss was mainly driven by an impairment charge of 2.93 billion riyals on the fair value of Saudi Iron and Steel Company (Hadeed) after Saudi Arabia’s sovereign wealth fund acquired SABIC’s entire stake in the company.

SABIC’s divestment in Hadeed was agreed to in September, allowing the Saudi petrochemicals giant to “optimise its strategic portfolio and focus on its core business,” it said.

Revenues fell to 35.98 billion riyals from 43.32 billion a year earlier, but was up almost 6% quarter-on-quarter.

Saudi’s SABIC posts 94% drop in Q4 net profit on lower average sales prices

The global petrochemical market continues to witness weak global demand and an increase in supply for most products, SABIC said.

Its average selling price fell 5% quarter-on-quarter while prices for agri-nutrient products increased by 11%.

The company said it remains disciplined in managing its capital expenditure which for 2023 it estimates at $3.5 billion to $3.8 billion.

Chemical makers had flagged a potential blow in the second half of the year from a slower-than-expected recovery in China following its post-pandemic reopening and lower demand in Europe.

Shares of SABIC have declined almost 15% this year.