Aramco chemicals JV Sadara sees losses of $228m

Riyadh, The Gulf Observer: Sadara Chemical Co., a joint venture between oil firm Saudi Aramco and US company Dow Chemical Co., suffered huge losses in the first nine months of 2022 on the back of higher feedstock prices.

Losses of the giant JV reached SR893 million ($238 million), compared to a net profit of SR2.9 billion in the same period the year before, a bourse filing showed.

This was coupled with revenue drops of SR12 billion during the nine-month period, a decline of 11 percent from the same period in 2021.

The losses were caused by lower average selling prices and higher production costs due to higher feedstock prices, resulting in margin compression; despite this, Sadara continued to deliver higher volumes, it said.

In addition, the company realized a modification gain of SR1.05 billion from debt reprofiling.