SABIC to Cut Expenditure After Second Consecutive Quarterly Loss
- 04-May-2020 2:00 PM
- Journalist: Timothy Greene
Saudi Basic Industrial Corporation announced to suspend all the operations for projects involving major capital expenditure after suffering depreciation in the quarterly revenue for the second consecutive time. The company reported a loss of INR 19097 Million at the end of the final quarter of FY 20. With this quarterly loss, shares of SABIC went down by 1 percent in the early trade. This loss in revenue is anticipated to extend further till the end of the year due to oversupply of the products in the global market and negligible demand. The Chief Executive Officer of SABIC earlier raised a concern that the prices of products will be harshly affected by plunge in energy prices backed by sputtering economic outlook. To combat to the decrease in profit margins, the company has decided to halt all the upcoming non-priority projects to save itself from further expenditures in the days of severe economic recession. However, it will continue all the operations in developing regions like China and India under strategic outlook for the company.