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Petro Rabigh swings to net loss on lower margins, market conditions

October 29/2020

MOSCOW (MRC) -- Rabigh Refining and Petrochemical Company (Petro Rabigh) swung to net losses of SAR 610 million in the third quarter (Q3) of 2020, versus net profits of SAR 394 million in the same quarter a year earlier, said Chemweek.

The return to losses was driven by the challenging market conditions and the prevailing coronavirus pandemic, which led to lower refinery margins, according to a bourse statement on Tuesday.

Moreover, the decline in global travel has severely impacted demand for Jet fuel.

Revenues amounted to SAR 7.1 billion in the three-month period ended 30 September 2020, a yearly decrease of 19.3%.

Over the first nine months of the year, the Tadawul-listed firm turned to a net loss of SAR 3.8 billion, against a net profit of SAR 343 million in the year-ago period.

As MRC informed earlier, Sumitomo Chemical and Saudi Aramco have jointly loaned out a total of USD2bn to Rabigh Refining and Petrochemical Co (Petro Rabigh), which faced shortfall of working capital as the market environment has rapidly deteriorated since end-2019.

Ethylene and propylene are feedstocks for producing PE and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,496,500 tonnes in the first eight months of 2020, up by 5% year on year. Shipments of all ethylene polymers increased, except for linear low desnity polyethylene (LLDPE). At the same time, PP shipments to the Russian market reached 767,2900 tonnes in the eight months of 2020 (calculated using the formula - production minus exports plus imports - and not counting producers' inventories as of 1 January, 2020). Supply increased exclusively of PP random copolymer.
Author:Anna Larionova
Tags:crude oil, PP, PE, ethylene, LLDPE, PP random copolymer, copolymer, neftegaz, petrochemistry, Petro Rabigh, Sumitomo.
Category:General News
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