Saudi Basic Industries (2010: SAR83.30) weakens below moving average price 30 November 2022

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Saudi Basic Industries Corp. (TASI:2010), Saudi Arabia's largest Petrochemical industries company by market cap, has fallen 10.0 hallalah (0.1%) from its previous trading session to close at SAR83.30. Compared with the All Share Index (TASI) which rose 34.6 points (0.3%) in the day, the relative price change was -0.3%.

The 200-day Moving Average Price (MAP) is SAR105.25, down from SAR105.41 on Tuesday. The price to MAP ratio is 0.79.

In the past month the MAP has exceeded the share price on 23/23 days; a bearish signal.

There were 1,493,729 shares worth SAR124.4 million ($33.2 million) traded today. The volume was 0.6 times the average daily trading volume of 2.4 million shares.

SAUDI BASIC INDUSTRIES Stock Dashboard [traded in Saudi Riyal, SAR]

ExchangeSAUDI ARABIANSectorPetrochemical Industries
Currency1.000 USD = 3.75 Saudi Riyal (SAR)Independent Sector RankingRanked 481 in Forbes2000
Nov 30, 2022SAR83.30Market CapSAR250 billion
Dividend Yield (TTM)5.4%Shares Outstanding3,000,000,000
DPS (past 12 months)SAR4% Held by Top 4 Shareholders70
EPS Growth (Q3 2022 vs Q3 2021)-67.2%2010 in IndicesAll Share, Petrochemical Industries
Ave Daily Volume2,356,411 sharesIndependent Sector comparison by Dividend Yield % (TTM)Stock: 5.4; Sector: 4.89. 9.4% Discount to sector av. Attractive dividend yield compared to sector av
52-Week Range81.10 - 135.89PV$1000 (1 yr)SAR834

Financial News

Quarterly Report (Q3/2022):

Release Date: November 08, 2022

Quarterly Report Analysis Q3 2022: Saudi Basic Industries sequential quarterly profits hit by 77% fall

Saudi Basic Industries (TASI:2010), announced net profit of SAR1.8b ($490m) for the quarter-ended 30 September 2022 [Q3/2022], down 77% from the previous quarter [Q2/2022] and down 67% from the year-earlier period [Q3/2021].

Quarterly Report (Q3 2022)

Quarter-ended30 Sep [Q3/2022]30 Jun [Q2/2022]31 Mar [Q1/2022]
Revenue, SAR billion46.919.115.9
Revenue, $ billion12.55.14.2
Sequential growth in Revenue %14620.10.2
Net Profit, SAR billion1.87.96.5
Net Profit, $490million2.1billion1.7billion
Sequential growth in Net Profit %-7722.431.2

Compared with the Previous Corresponding Period [PCP; Q3/2021], year-over-year [y.o.y.] EPS was down 67.2%, Revenue was up 7.3% and Net Profit was down 67.2%.

Quarter-ended30 Sep [Q3/2022]30 Sep [Q3/2021]
EPS, hallalah61186
PCP growth in EPS %-67-
Revenue, SAR billion46.943.7
Revenue, $ billion12.511.7
PCP growth in Revenue %7.3500
Net Profit, SAR billion1.85.6
Net Profit, $490million1.5billion
PCP growth in Net Profit %-67414

Stock vs Index (Annual Percentage Change)

December 31Last price in SAR Annual ReturnIndex return of All Share Index (TASI)
2021SAR111.4817.529.8
2020SAR94.8513.33.6
2019SAR83.69-15.87.2
2018SAR99.3618.38.3
2017SAR83.98--

Over 5 years Saudi Basic Industries Corp. is up a total 32.8% at an annualized rate of 7.3% compared to the Index being up 56.1% at an annualized rate of 11.8%.

Saudi Basic Industries Corp. has outperformed the All Share Index (TASI) in 2 of the past 5 years

years: 2020, 2018;

INDEX

SECTION 1 THE PAST QUARTER: FINANCIALS

SECTION 2 TODAY'S BEARISH SIGNALS

SECTION 3 ONGOING BEARISH PARAMETERS

SECTION 4 TODAY'S BULLISH SIGNALS

SECTION 5 ONGOING BULLISH PARAMETERS

SECTION 6 CORPORATE PROFILE AND INDEPENDENT RATINGS

SECTION 7 DIVIDEND

SECTION 8 TOP MANAGEMENT

SECTION 9 BOARD OF DIRECTORS

SECTION 10 FINANCIALS AS REPORTED Q3 2022, PAST 7 YEARS

SECTION 11 TOP SHAREHOLDERS

SECTION 12 PEER COMPARISON & RANKING OF 2010

SECTION 13 CURRENCY SYNOPSIS: SAUDI RIYAL (SAR)

SECTION 14 STOCK IDENTIFIERS

ANNEXURE I FINANCIALS FY 2020

GLOSSARY

DATA & ARCHIVE DOWNLOAD CENTER

2010: EXCEL TABLES ARE AVAILABLE TO EXPORT DATA:

+ PRICE VOLUME - 5-YEAR HISTORY

+ FINANCIALS - 10-YEAR HISTORY [INCLUDING Q3/2022]:

+ PEER COMPARISON - STOCK IN PETROCHEMICAL INDUSTRIES SECTOR AND STOCK IN INDICES

+ PATENTS - CATEGORISED LIST OF 5-YEAR HISTORY OF 84 :

2010: LINKS IN HTML TO FURTHER INFORMATION:

+ NEWS ARCHIVES - 2010 PAST 4 YEARS IN HTML:

+ PRICE VOLUME CHARTS IN HTML

+ EUR vs SAR EXCHANGE RATE CHARTS IN HTML

+ BOARD OF DIRECTORS

SECTION 1 THE PAST QUARTER: FINANCIALS

1.1 Saudi Basic Industries Financials Summary:

+ Sales were down 29.4% from $9 billion in FY2019 to $6.4 billion in FY2020.

+ Net profit was down 98.8% from $1.5 billion in FY2019 to $17.8 million in FY2020.

Year ended DecFY2020FY2019FY2018
Sales ($ B)6.4916
Pretax ($)466.5M2B6.4B
Net ($)17.8M1.5B5.7B

1.2 Quarterly Financials (Q3/2022)

Saudi Basic Industries sequential quarterly profits hit by 77% fall

Release Date: November 08, 2022

Saudi Basic Industries (TASI:2010), announced net profit of SAR1.8b ($490m) for the quarter-ended 30 September 2022 [Q3/2022], down 77% from the previous quarter [Q2/2022] and down 67% from the year-earlier period [Q3/2021].

Quarterly Report (Q3 2022)

Quarter-ended30 Sep [Q3/2022]30 Jun [Q2/2022]31 Mar [Q1/2022]
Revenue, SAR billion46.919.115.9
Revenue, $ billion12.55.14.2
Sequential growth in Revenue %14620.10.2
Net Profit, SAR billion1.87.96.5
Net Profit, $490million2.1billion1.7billion
Sequential growth in Net Profit %-7722.431.2

Compared with the Previous Corresponding Period [PCP; Q3/2021], year-over-year [y.o.y.] EPS was down 67.2%, Revenue was up 7.3% and Net Profit was down 67.2%.

Quarter-ended30 Sep [Q3/2022]30 Sep [Q3/2021]
EPS, hallalah61186
PCP growth in EPS %-67-
Revenue, SAR billion46.943.7
Revenue, $ billion12.511.7
PCP growth in Revenue %7.3500
Net Profit, SAR billion1.85.6
Net Profit, $490million1.5billion
PCP growth in Net Profit %-67414

Currency Conversion (September 30, 2022): $1 = SAR3.75

Currency Conversion (September 30, 2021): $1 = SAR3.75

SECTION 2 TODAY'S BEARISH SIGNALS

2.1 PAST WEEK: WEAK MOMENTUM DOWN - 2010 dips 1.3% on volume 0.9 times average

The price ranged between a high of SAR84.40 on Thursday Nov 24 and a low of SAR82.50 on Monday Nov 28.

NovSaudi Basic IndustriesClose [SAR]Change %RPC % *Comment
Thu 24In top 3% performers of All Share Index (TASI)84.41.82.2Week-high of 84.4; Top Rise
Sun 27Offers dividend yield of 5.3%84.401.3Price rise on beating relative strength
Mon 28Loses SAR6 billion ($2 billion) (2.3%) in MCap, steepest heavyweight fall in Petrochemical industries sector82.5-2.3-1.8Week-low of 82.5; Steepest Fall
Tue 29Adds SAR3 billion ($720 million) (1.1%) in MCap, top heavyweight rise in Petrochemical industries sector83.41.11.0VI*=1.7
Wed 30Offers dividend yield of 5.4%83.3-0.1-0.3Price rise on beating relative strength

* RPC - Relative Price Change is % price change of stock less % change of the All Share Index (TASI).

[Volume Index (VI); 1 is average]

2.2 Rank in the bottom 11% by Relative Valuation in the Saudi Arabian market

DescriptionValueRank
Price to Book Value9.4In Bottom 11%

2.3 Downtrend

Price/Moving Average Price of 0.79 and negative MACD:

- The Price/MAP 200 for Saudi Basic Industries is 0.79. Being less than 1 is a bearish indicator. It is lower than the Price/MAP 200 for the All Share Index (TASI) of 0.88, a second bearish indicator. The stock is trading below both its MAPs and the 50-day MAP of SAR87.99 is lower than the 200-day MAP of SAR105.25, a third bearish indicator. The 200-day MAP has decreased to SAR105.25, a fourth bearish indicator.

- The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 83.92 minus the 26-day EMA of 85.54 is negative, suggesting a bearish signal. Both the 12-day EMA as well as the 26-day EMA are falling, another bearish signal.

- The price to 50-day EMAP ratio is 0.9, a bearish indicator. In the past 200 days this ratio has been under 0.9 25 times suggesting further downside. The 50-day EMAP has decreased to SAR88.21. A decrease is another bearish indicator.

Past Month:

- Falls to Rises: In the past month the number of falls outnumbered rises 13:8 or 1.6:1.

Past Quarter:

- In the last three months the stock has hit a new 52-week low thirteen times, pointing to a significant downtrend.

Trailing Relative Strength (6 months) at 34 percentile:

- The stock has a 6-month relative strength of 34 in the Saudi Arabian market of 208 stocks which means it has underperformed 66% of the market.

2.4 Overvaluation

Price to Book of 9.4 > Sector average of 4.5:

- The Price to Book of 9.4 indicates overvaluation compared with sector average of 4.5 and 8.2 for the Saudi Market.

2.5 Other Bearish Signals

- Return on Equity of 0.3% versus sector average of 17.0% and market average of 18.3%.

- Total Liabilities/EBITDA of 57.9 is more than 5, this compares unfavourably with the Joseph Piotroski benchmark of 5.

- Return on Capital Employed of 0.7% versus sector average of 5.8% and market average of 25.3%.

- As per the Du Pont analysis, Return on Equity is less than stellar at 0.3%. This is computed as net profit margin of 0.3% times asset turnover [sales/assets] of 0.08 times leverage factor [total assets/shareholders' equity] of 11.1.Also, this has deteriorated from 13.1% last year.

ROE (%)Profit Margin (%)Asset TurnoverLeverage factor
Current Year0.30.30.0811.1
Previous Year13.116.40.117.3

SECTION 3 ONGOING BEARISH PARAMETERS

3.1 Present Value of SAR1000 Invested in the Past [3 Mo, 1 Yr]; The Worst Periods with PVSAR1000 < 856

PVSAR1,0003 mo ago1 yr ago
2010.TASISAR855SAR834
Petrochemical Industries sectorSAR819SAR790
All Share Index (TASI)SAR880SAR1,006

3.2 The Worst Periods [3 Mo, 1 Yr] with Price Change % < -16.3

1-Year price change of -19.9% for Saudi Basic Industries underperformed the change of -0.6% in the All Share index (TASI) for a relative price change of -19.3%.

Price Change %QuarterYear
Saudi Basic Industries-16.4-19.9
Petrochemical Industries sector-19.2-22.2
All Share index (TASI)-11.2-0.6

3.3 Moving Annual Return of -15.6% in the past year:

Moving Annual Return was -15.6% in the past year. Based on a dynamic start date of 5 years ago, the real rate of return has averaged 6.1%

2010Close (SAR)Dividends (SAR)Capital Gain / (Loss) %% YieldAnnual Return %
Nov 3083.34.5(19.9)4.3(15.6)
1 Yr ago103.993.2515.23.618.8
2 Yrs ago90.273.711.34.615.9
3 Yrs ago81.14.4(19.2)4.4(14.8)
4 Yrs ago100.384.420.75.326.0

Close 5 years ago SAR83.15

3.4 Annualised Period-based Total Shareholder Returns [TSR %]: The Worst Periods with TSR < 4.4%

TSR %1 yr5 yrs10 yrs
2010.TASI-16.64.33.8

3.5 Declining Volume, down 47% in 5 years

In the past five years, Average Daily Volume of Trading (ADVT) has decreased 47.0% to 2.4 million shares.

Avg. Daily Volume Traded 12 months ended Nov 30, million shares

YearADVT
20222.4
20211.6
202010.4
20193.0
20184.5

3.6 Declining share turnover, down 40% in 5 years

In the past five years, average daily share turnover has decreased 39.9% to SAR257.4 million ($68.6 million). This suggests decreased liquidity.

Past five years, 12 months ended Nov 30 (SAR million)

YearAverage Daily Turnover
2022257.4
2021182.0
2020830.0
2019281.1
2018428.5

3.7 Satisfies 1 out of 9 criterion of Joseph Piotroski [pass mark 5]:

- Improvement in current ratio from 3.2 to 3.3.

But does not meet the following 8 criteria of Joseph Piotroski:

- Return on Assets improvement.

- Improvement in long-term debt to total assets.

- Total shares on issue unchanged (or reduction in total shares on issue).

- Improvement in gross margin.

- Improvement in asset turnover.

SECTION 4 TODAY'S BULLISH SIGNALS

4.1 Rank in the top 24% by Relative Valuation in the Saudi Arabian market

DescriptionValueRank
Dividend Yield %5.4%In Top 16%
Cash to MCap %16.2In Top 24%

4.2 Undervaluation

Dividend Yield:

Saudi Basic Industries stock is the thirteenth highest dividend yielding stock in the All Share Index (TASI).

The Dividend Yield of 5.4% is better than the Index average of 3.4%

- The relative yield of the stock, defined by its yield of 5.4%, divided by average yield of dividend yielding stocks in the All Share Index (TASI) of 3.4% is 158.4%. This suggests the stock is undervalued in dividend yield terms.

MCap/Total Assets:

- Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.8. Compared with the rest of the market the stock is undervalued.

- The company is cash rich with Cash to Market Capitalisation at 16.2%.

4.3 Other Bullish Signals

- Net profit margin has averaged 17.5% in the last 3 years. This is considered superior and suggests a high margin of safety.

SECTION 5 ONGOING BULLISH PARAMETERS

5.1 Rank in the top 3% by Size in the Saudi Arabian market

DescriptionValueRank
MCap$67 billionIn Top 2%
Ave daily TurnoverSAR124.4 million ($33.2 million)In Top 3%

5.2 Present Value of SAR1000 Invested in the Past 3 Years; The Best Period with PVSAR1000 > 1,157

PVSAR1,0003 yrs ago
2010.TASISAR1,158
Petrochemical Industries sectorSAR1,127
All Share Index (TASI)SAR1,372

5.3 Annualised Period-based Total Shareholder Returns [TSR %]: The Best Period with TSR > 4.9%

TSR %3 yrs
2010.TASI5

5.4 Increased VWAP, up 10% in 5 years

In the past five years Volume Weighted Average Price (VWAP) has increased by 10.3% to SAR107.97. Based on a dynamic start date of five years ago, there have been declines in VWAP in 3 out of 5 years.

Past five years, 12 months ended Nov 30 (SAR)

YearHigh PriceVWAPLow Price
2022135.89107.9781.1
2021131.28110.7989.52
202093.5580.6455.17
2019110.1695.9175.4
2018111.597.8483.15

5.5 Growth > 20% for Revenue and Net Profit:

- Net Profit margin is positive and has seen consecutive rises in recent quarters. [All figures in %]

Qtr-endedRevenue GrowthNet Profit GrowthNet Profit Margin
Jun 22 [Q2 vs Q1]20.122.441.6
Mar 22 [Q1 vs Q4]0.231.240.8
Dec 21 [Q4 vs Q3]13.5-11.831.1

5.6 Satisfies one criterion of Benjamin Graham

-"Current ratio of two or more"; current assets are 3.3 times current liabilities.

SECTION 6 CORPORATE PROFILE AND INDEPENDENT RATINGS

6.1 Activities

Saudi Basic Industries (SABIC) is a petrochemical company that operates in the non-oil industrial sector worldwide. SABIC operates six core business units. The Basic Chemicals unit products include methanol, ethylene, propylene, benzene, xylene, styrene, crude industrial ethanol, butadiene and butadiene-1. The Intermediates unit produces ethylene glycol, ethylene dichloride, and vinyl chloride monomer and dioctyl phthalate. The polyvinyl chloride (PVC) and Polyester unit provides polymeric materials and allied products. Its main products include polyester, melamine, polypropylene, PVC and polystyrenes. The Fertilizers unit offers ammonia and urea, phosphate and liquid fertilizers. The Metals unit is a supplier of flat steel, long steel and aluminum products. The Polyolefins business unit is a producer of polyethylene (PE), polypropylene (PP) and their by-products. It is Saudi Arabia's largest Petrochemical industries company by market capitalisation.

6.2 Independent Ratings and Relative Value Indicators

+ Industryweek 1000:

Saudi Basic Industries Corp. is a new entrant in the Industry Week list of the world's largest 1000 manufacturers by Revenues in 2016, ranked 94.

+ Newsweek 500:

It was ranked 415 by Newsweek and Corporate Knights Capital in the World's 500 Greenest Companies 2016. It had outstanding scores of 10.4% in Water productivity, 2.1% in Energy productivity and 1.7% in Carbon productivity.

6.3 Contact Details

Websitehttp:// www.sabic.com
Physical AddressPO Box 5101 , Riyadh 11422
Phone2258000-2259701
Fax2259000
Emailshares@sabic.com

SECTION 7 DIVIDEND

7.1 Dividend History

In the past 5 years annual dividends have increased by SAR0.1 from SAR4.4 to SAR4.5. Based on a start date of 5 years ago, there has been only three decline in dividends over the last 5 years.

DateValue (SAR)Type
12 Sep 20222.25Cash
11 Apr 20222.25Cash
Tr 12 Months4.5
2020 - 20213.25
2019 - 20203.7
2018 - 20194.4
2017 - 20184.4

SECTION 8 TOP MANAGEMENT

8.1 Top Management

Top Management

NameDesignation
Yousef Abdullah Al-BenyanChief Executive Officer, Vice Chairman
Abdulaziz Saleh AljarbouChairman

8.2 Profiles of Top Management

Yousef Abdullah Al-Benyan

CEO & Vice Chairman

Yousef Abdullah Al-Benyan is Vice Chairman and Member of Investment Committee, Chief Executive Officer of SABIC, the world's fourth-largest diversified petrochemicals company.

Prior to his current position, Mr. Al-Benyan served as Executive Vice President, Corporate Finance and CFO; Executive Vice President, Chemicals; and Executive Vice President, Corporate Human Resources.

Mr. Al-Benyan joined SABIC in 1987, just eleven years after the company's formation. His first role was as a business development specialist before joining Corporate Communications. Mr. Al-Benyan relocated to Stamford, Connecticut as Operations Manager, then in 1994 to Houston, Texas as Commercial Manager for SABIC in the USA and Latin America. In 2002, he was promoted to General Manager of SABIC Asia, headquartered in Singapore.

Mr. Al-Benyan returned to Houston in the fall of 2005 as a General Manager of SABIC Americas.

His other positions include Chairman of the Gulf Petrochemicals and Chemicals Association (GPCA), Chairman of the Board of Yanbu National Petrochemical Company (Yansab), the Saudi Arabian Fertilizer Company (SAFCO) and The Saudi Iron & Steel Company (HADEED).

Mr. Al-Benyan holds an Economics degree and a Master in Industrial Management, in addition to several specialized executive management courses.

SECTION 9 BOARD OF DIRECTORS

9.1 Board Of Directors

Board Of Directors

Name
Fahad Abdullah Almubarak
Khaled Nahas
Khaled Homza A. Nahas
Nader Ibrahim Alwehibi
Roberto Gualdoni
Mohammed Talal Alnahas
Abdullah Mohammed Alissa
Abdullah M Al-Issa

9.2 Profiles of Board of Directors

Mohammed Talal Alnahas

Director

Mohammed Al-Nahas is a Member of the Board of Directors, Risk and Sustainability Committee, and the Remuneration and Nomination Committee. He is also the Governor of the Public Pension Agency, with 32 years of experience in banking, business development, and administration.

Al-Nahas also holds the positions of Chairman of AI-Raidah Investment Company (wholly-owned by the Public Pension Agency) and Chairman of the Auditing and Risk Committee at AI-Raidah Investment, and is a member of Board of Directors of Riyad Bank, Saudi Telecom Company (STC), and the International Company for Water and Power Projects (ACWA Power).

Among the key banking positions Al-Nahas has held include General Manager for Branches, Al-lnma Bank, and Regional Manager, Central Region Branches, SAMBA Financial Group. He has played a significant role in launching and operating the largest network of Islamic banking branches in Saudi Arabia and the Middle East for Al-Inma Bank.

Al-Nahas holds a Bachelor's degree in Administration from the King Saud University, and is a graduate of the University of Michigan Executive Business Administration Program.

Abdullah Mohammed Alissa

Director

Abdullah bin Mohammed Al-Issa is a Member of the Board of Directors, Head of Remuneration and Nomination Committee and Member of both Audit and Investment Committees. He is also the Chief Executive Officer of Asila Investment Company and Chairman of the Abdullah Mohammed Al-Issa Consulting Engineers.

He is the Chairman of the Board of Riyad Bank and Dur Hospitality, and holds Board membership in various companies including Maaden and Etihad Etisalat (Mobily).

Mr. Al-Issa holds an MSc in Engineering Management and BSc in Industrial Engineering from the Southern Methodist University in the United States.

Fahad Abdullah Almubarak

Director

Dr. Fahad Abdullah Almubarak, assumed his post as Member of the SABIC Board of Directors' Investment Committee in the last quarter of 2017.

Dr. Almubarak is currently Advisor to the Saudi Royal Court and Secretary General of the Saudi Secretariat for the G20. He is also a board member of several companies.

He was earlier Governor of the Saudi Arabian Monetary Agency, 2011 to 2016; Chairman of the Board of Directors of the Saudi Stock Exchange (Tadawul), 2003-2011; Member of the Board of Directors of Saudi Telecommunications Company (STC), 1998-2003; Chairman of Morgan Stanley Saudi Arabia, 2005-2011; and Member of the Board of Directors of Al-Malaz Group, 2000-2002.

Dr. Almubarak was Member of the Board of Directors of the Arab-Palestinian Investment Company, 1995-2000; General Manager of Rana Investment Company, 1992-2000; and Member of the Board of Directors of Al-Alamiya Insurance, 1996-1997.

He was also a member of the Saudi negotiating team with international oil companies to participate in gas projects in Saudi Arabia from 2000 to 2001, and a Shoura member from 1999 to 2005.

He holds a PhD in Business Administration (1991), Master's in Financial Accounting and Taxation (1989), and Master's in Business Administration (1990) all from the University of Houston, USA.

Dr. Almubarak also received a Master's degree in Industrial Engineering from Southern Methodist University in the United States in 1982, and a Bachelor's degree in Civil Engineering from the same university in 1981.

Khaled Homza A. Nahas

Director

HE Dr. Khaled Hamza Nahas is a member of SABIC Board of Directors, Chairman of Remuneration and Nomination Committee, and a member of the Investment Committee.

Dr. Nahas holds a PhD in Engineering -Economic Systems.

He is currently a member of several companies' boards of directors such as Mithaq Holding Company, and Arch Investment Company.

He began his career in the educational sector as a university lecturer. Before his appointment as a SABIC Board member, Dr. Nahas held various leadership positions, including the Deputy Chairman of the Industrial Committee of the Chamber of Commerce and Industry (1986-1989), a Member of the Shoura Council (1997-2001), and Makkah Mayor for five years (2001-2006).

Dr. Nahas was also a member of the board of directors of several companies, including Clariant Company, the Saudi Investment Bank, Military Industries Organization, Saudi Hotels Company, Saudi Telecom Company (STC), National Commercial Bank, Riyadh Bank, National Water Company, Hasanah Investment Company, and Bin Laden Co. He also chaired the Board of Directors of the National Company for Spring Mattresses and Sponges, and Tabuk Hotels Company.

Roberto Gualdoni

Director

Mr. Roberto Gualdoni, a German industrialist of 20 years' experience, assumed his post as Member of the SABIC Board of Directors' Remuneration and Nomination Committee in the last quarter of 2017.

He has been Member of the Board of Directors of the Carmeuse Group since early this year and Member of the Board of Directors of the American Aerogel Corp since 2016. He has also been a non-executive member of the Board of Directors of Outokumpu Oyj since 2014. He is also the Chairman of Cabb.

Gualdoni was Member of the Board of Directors of several other companies, including Plastics Europe, 2012 to 2014; BIT AG, Zug/Switzerland, 2006 to 2007; Plastic Recovery Consulting Tecpol, 2002 to 2005; and FIW Munich, 1998 to 2001.

He was Chairman of the Supervisory Board of BASF GE Schwarzheide from 2001 to 2005.

Gualdoni holds a Master's degree in business administration from France (1987), and a Bachelor's degree in industrial engineering from Argentina (1983).

Abdullah M Al-Issa

Director

Abdullah bin Mohammed Al-Issa is the Chief Executive Officer of Asila Investment Company and Chairman of the Abdullah Mohammed Al-Issa Consulting Engineers.

He is also the Chairman of the Board of Riyad Bank and Dur Hospitality, and holds Board membership in various companies including Maaden and Etihad Etisalat (Mobily).

Mr. Al-Issa holds an MSc in Engineering Management and BSc in Industrial Engineering from the Southern Methodist University in the United States.

Khaled Nahas

Director

Beginning his career as a university lecturer, Dr. Khaled Nahas is now a prominent businessman, holding a PhD in Engineering of Economic Systems.

Before his appointment as a SABIC Board Member, Dr. Nahas held various prestigious positions, including Deputy Chairman of the Industrial Committee in the Chamber of Commerce and Industry (1986-1989), Member of the Shoura Council (1997-2001), and Makkah Mayor (2001-2006).

Dr. Nahas was also a member of the Board of Directors of several companies, including Saudi Investment Bank, Military Industries Organization, Saudi Hotels Company, Saudi Telecommunications Company, National Commercial Bank, and Riyadh Bank. He was also Chairman of the Board of Directors of the National Company for Spring Mattresses and Sponges and the Tabuk Hotels Company.

He is currently a Board Member of the National Water Company, and Hasanah Investment Company.

Nader Ibrahim Alwehibi

Director

Mr. Nader Ibrahim Al-Wehibi is a member of SABIC Board of Directors and a member of the Audit Committee and the Risk and Sustainability Committee.

Mr. Al-Wehibi holds a Master's degree in Social Protection Policy from Maastricht University, The Netherlands, and a Bachelor's degree in Insurance from Indiana State University, the United States.

Mr. Al-Wehibi is currently the Assistant Governor for Insurance Affairs, General Organization for Social Insurance (GOSI). He is also a member of the Board of Directors, a member of the Executive Committee, and member of the Nominations & Compensations Committee of Riyad Bank, and a board member of Clariant.

He previously served as a member of the Board of Directors of the National Medical Care Company, and a member of the Board of Directors of Jarir Marketing Company; and occupied several positions at the General Organization for Social Insurance (GOSI).

SECTION 10 FINANCIALS AS REPORTED Q3 2022, PAST 7 YEARS

10.1 Financials as reported (Q3/2022)

RESULTS OF OPERATIONS AND FINANCIAL CONDITION

(In SAR Thousand, except per share data and shares outstanding)

INCOME STATEMENT AS REPORTED (Q3/2022)

DescriptionSAR ThousandSAR Thousand
Sep 3020222021Change %
Revenue46,867,78243,697,916Up 7.3
Cost of sales-37,024,857-31,403,619Deterioration 17.9
Gross profit9,842,92512,294,297Down 19.9
General and administrative expenses-2,598,146-2,526,394Deterioration 2.8
Selling and distribution expenses-4,305,877-2,834,832Deterioration 51.9
2,938,9026,933,071Down 57.6
Share of results of integral joint ventures339,594770,371Down 55.9
Income from operations3,278,4967,703,442Down 57.4
Share of results of non-integral joint ventures and associates621,933723,544Down 14.0
Finance income204,72968,281Up 199.8
Finance cost-992,541-557,598Deterioration 78.0
-787,812-489,317Deterioration 61.0
Other income net369,992294,296Up 25.7
Income before zakat and income tax3,482,6098,231,965Down 57.7
Zakat expense-421,962-701,349Improved 39.8
Income tax expense-29,400-298,070Improved 90.1
Net income3,031,2477,232,546Down 58.1
Attributable to:
Equity holders of the Parent1,835,9225,594,641Down 67.2
Non-controlling interests1,195,3251,637,905Down 27.0
3,031,2477,232,546Down 58.1
Basic and diluted earnings per share (Saudi Riyals): Earnings per share from net income attributable to equity holders of the Parent61.0 hallalahSAR1.86Down 67.2

BALANCE SHEET AS REPORTED (Q3/2022)

DescriptionSAR ThousandSAR Thousand
Sep 30, 2022Dec 31, 2021Change %
ASSETS
Non-current assets:
Property plant and equipment126,174,100131,018,714Down 3.7
Right-of-use assets5,883,2666,357,560Down 7.5
Intangible assets19,654,55619,856,254Down 1.0
Investments in associates and joint ventures43,669,18242,187,623Up 3.5
Investments in debt and equity instruments844,4941,043,007Down 19.0
Deferred tax assets474,701565,220Down 16.0
Derivative financial instruments2,429,2502,389,875Up 1.6
Other non-current assets and receivables7,276,2277,622,444Down 4.5
Total non-current assets206,405,776211,040,697Down 2.2
Current assets:
Inventories30,006,04428,621,278Up 4.8
Trade receivables25,590,99026,330,104Down 2.8
Prepayments and other current assets6,174,9745,977,302Up 3.3
Short-term investments8,912,5525,066,554Up 75.9
Cash and bank balances41,229,77941,402,842Down 0.4
Total current assets111,914,339107,398,080Up 4.2
TOTAL ASSETS318,320,115318,438,777Down
EQUITY AND LIABILITIES
Equity attributable to equity holders of the Parent182,877,239180,140,793Up 1.5
Non-controlling interests33,188,69231,692,505Up 4.7
Total equity216,065,931211,833,298Up 2.0
Non-current liabilities:
Long-term debt and lease liabilities31,003,75232,304,208Down 4.0
Employee benefits14,103,18318,313,670Down 23.0
Deferred tax liabilities951,804748,733Up 27.1
Derivatives financial instruments3,476,7943,300,827Up 5.3
Provisions and other non-current liabilities2,261,1862,533,016Down 10.7
Total non-current liabilities51,796,71957,200,454Down 9.4
Current liabilities:
Short-term borrowings current portion of long-term debt and lease liabilities5,467,2146,255,062Down 12.6
Trade payables accruals and other liabilities44,990,25143,149,963Up 4.3
Total current liabilities50,457,46549,405,025Up 2.1
Total liabilities102,254,184106,605,479Down 4.1
TOTAL EQUITY AND LIABILITIES318,320,115318,438,777Down

CASH FLOW AS REPORTED (Q3/2022)

DescriptionSAR ThousandSAR Thousand
Sep 3020222021Change %
Operatinq activities:
Income before zakat and income tax24,739,33525,625,839Down 3.5
Adjustments to reconcile income before zakat and income tax to net cash from operating activities:
Depreciation amortisation and impairment10,464,93710,471,368Down 0.1
Share of results of non-integral joint ventures and associates-2,907,896-1,420,174Deterioration 104.8
Finance costs1,986,3201,209,234Up 64.3
Provisions and other movements net201,311176,628Up 14.0
Changes in operating assets and liabilities:
Changes in inventories trade receivables and payables-2,533,971-9,707,988Improved 73.9
Increase in employee benefits970,590297,484Up 226.3
Other assets and liabilities changes-3,697,8181,939,738Deterioration
29,222,80828,592,129Up 2.2
Finance cost paid-545,227-770,624Improved 29.2
Zakat and income tax paid-3,290,845-1,989,379Deterioration 65.4
Net cash from operating activities25,386,73625,832,126Down 1.7
Investing activities:
Purchase of tangible and intangible assets-6,671,697-7,782,271Improved 14.3
Investments in non-integral joint ventures and associates-660,016-127,037Deterioration 419.5
Consideration paid for step acquisition-401,625
Dividend received from non-integral joint ventures and associates810,373648,213Up 25.0
Short-term investments net-3,858,503-1,140,472Deterioration 238.3
Other assets movements277,806308,384Down 9.9
Net cash used in investing activities-10,503,662-8,093,183Deterioration 29.8
Financing activities:
Proceeds from debt3,045,868427,125Up 613.1
Acquisition of non-controlling interests-229,8811,687,500Deterioration
Debt and lease repayments-6,531,926-2,974,356Deterioration 119.6
Dividends paid to shareholders and non-controlling interests-11,581,991-7,467,337Deterioration 55.1
Net cash used in financing activities-15,297,930-8,327,068Deterioration 83.7
(Decrease) increase in cash and cash equivalents-414,8569,411,875Deterioration
Cash and cash equivalents at the beginning of the period41,389,49428,938,470Up 43.0
Effects of exchange rate changes on cash and cash equivalents-129,344-20,719Deterioration 524.3
Cash and cash equivalents at the end of the period40,845,29438,329,626Up 6.6

10.2 Download SAUDI BASIC INDUSTRIES Financials Past 7 Years

Description (December 31)2020201920182017201620152014
Income Statement
Sales (B)23.933.960.152.943.9150.6190.4
Other Revenue (B)1.1(1.6)2.532.52.3
Tax (B)1.72.12.62.632.12.1
Net profit66.8 M5.6 B21.5 B18.4 B17.8 B18.8 B23.3 B
Balance Sheet
Equity Share Capital (B)163161.9162.5
Total Assets (B)295.5310.4319.7322.5316.9328.2340
Current Asset (B)122118.3137135.892.4103.1
Fixed Asset (B)136.2170.1163.8167.4170173.2167
Working Capital (B)84.580.999.887.549.859.6
Cash Flow
Operating Cash Flow (B)2235.644.738.718.9
Investing Cash Flow (B)(14)(13.7)(29.6)4.8(4.2)
Financing Cash Flow (B)(14.5)(26.3)(31.7)(25.7)(33.4)
Net Cash Flow (B)(6.5)(4.5)(16.6)17.7(18.7)

SECTION 11 TOP SHAREHOLDERS

Top 4 shareholders

Name of the Share Holder% of Capital
Aramco Chemicals Co LLC70.0
Abdullah bin Mohammed Ibrahim Al Issa0.01
Yousef bin Abdullah Mohamed Al Benyan0.002
Anas bin Yousef bin Yacoub Kentab0.001

% held by Top 4 shareholders 70.0%

SECTION 12 PEER COMPARISON & RANKING OF 2010

12.1 BUYSELLSIGNALS FUNDAMENTALS VALUATION RANKING:

Saudi Basic Industries vs Saudi Market

Out of 208 stocks in the Saudi Arabian Market, Saudi Basic Industries is ranked second(2) by Market Cap in $, sixteenth(16) by Yield, Forty-first(41) by Premium to 52-Wk Low and Sixty-fourth(64) by Discount to 52-Wk High.

Saudi Avg20102010 Rank
Market Cap $12.9 B66.6 B2
Yield (%)3.35.416
Premium to 52-Wk Low (%)3.52.741
Discount to 52-Wk High (%)21.938.764
Net Profit $754.3 M17.8 M94
EBITDA Margin%-7.3115
Price/Net Tangible Assets8.2x9.4x142
ROA (%)7.80.02148

Negative values are shown in brackets.

12.2 Stock in Index and Stock in Sector

Description2010All Share Index (TASI)% of All Share Index (TASI)Petrochemical industries sector% of Petrochemical industries sector
Net Profit $17.8 M141.2 B0.015.8 B0.3
Revenue $6.4 B468.3 B1.415.6 B40.9
Total Assets $78.8 B1,943.1 B4.1140 B56.3
MCap $66.6 B2,572.9 B2.6122.9 B54.2

12.3 Relative Valuation Indicators: Stock vs Index and Stock vs Sector

Description2010All Share Index (TASI) Avg.Petrochemical industries sector Avg.
Yield (%)5.43.414.89
Price/Net Tangible Assets9.398.234.47

12.4 GLOBAL RANK [out of 47,500 stocks] AND RANK OF SAUDI BASIC INDUSTRIES IN THE MIDDLE EAST & AFRICA REGION [out of 2,119 stocks]

DescriptionValueGlobal RankIn MEA Region
MCap ($)66.6B2199
Total Assets ($)78.8B66420
Revenue ($)6.4B1,99329
Net Profit ($)17.8M13,365512
Return on Equity %0.328,8971,296
Net Profit Margin %0.327,8361,223
Price to Book9.432,9501,328
Yield %5.45,670459
PV1000 (1Year) $*83421,9651,130
$* Change (1Year) %-22.022,8981,174

* 1 year ago $1 = SAR 3.75

Nov 30, 2022: $ 1 equals SAR 3.75

12.5 RANK OF SAUDI BASIC INDUSTRIES IN THE ALL SHARE INDEX (TASI) [out of 165 stocks], IN THE SAUDI MARKET [out of 211 stocks] AND IN THE PETROCHEMICAL INDUSTRIES SECTOR [out of 11 stocks]

DescriptionValueIn All Share Index (TASI)In Saudi MarketIn Petrochemical industries sector
MCap (SAR)249.9B221
Total Assets (SAR)295.5B661
Revenue (SAR)23.9B441
Net Profit (SAR)66.8M779311
Return on Equity %0.311513911
Net Profit Margin %0.311013312
Price to Book9.412814511
Yield %5.413164
PV1000 (1Year) SAR83475794

12.6 LONG-TERM FUNDAMENTAL RANKING: 4 OUT OF 5 [5 is best]

Saudi Basic Industries is ranked number 1 out of 12 listed petrochemical industries companies in the Saudi Arabia with a market capitalization of SAR249.9 billion ($66.6 billion).

Stocks are scored on a set of parameters reflecting fundamental analytical tools involving valuation, size and financial performance. They are ranked according to the average values of those parameters. The highest ranking is 5 and the lowest ranking is 1.

SECTION 13 CURRENCY SYNOPSIS: SAUDI RIYAL (SAR)

13.1 % Change of SAR vs Currency Basket Period-Based

LastCountry1-day %1-week %1-Year %3-Yrs %
SAR1=0.267USDUnited States Of America0.0---
SAR1=1.911CNYChina-0.60.112.21.9
SAR1=36.971JPYJapan0.2-2.322.626.6
SAR1=0.257EUREuropean Union-0.2-1.28.76.1
SAR1=353.934KRWSouth Korea-1.0-2.211.212.7
SAR1=0.366SGDSingapore-0.2-0.50.30.6
SAR1=0.43NZDNew Zealand-0.1-1.59.93.4
SAR1=0.222GBPUnited Kingdom0.5-1.311.17.6
SAR1=0.398AUDAustralia-0.3-1.36.81.0
SAR1=2.083HKDHong Kong-0.1-0.2-0.2
SAR1=0.252CHFSwitzerland--1.12.3-5.2
SAR1=0.358CADCanada-0.1-5.31.1
SAR1=2.802SEKSweden0.3-1.915.110.0
SAR1=2.658NOKNorway0.1-2.710.48.7
SAR1=5.14MXNMexico-0.4-1.4-11.6-1.1

SECTION 14 STOCK IDENTIFIERS

ISIN: SA0007879121

PermID: 4295887293

RIC: 2010.SE

ANNEXURE I FINANCIALS FY 2020

I.I Financials, FY 2020 [year-ended 31 December 2020 ]

Saudi Basic Industries Revenue down 29%

Release Date: March 19, 2021

Saudi Basic Industries (TASI:2010) reported total revenue for the year-ended 31 December 2020 [FY2020] of SAR23.9b ($6.4b), down 29% from SAR33.9b ($9.0b) in the previous year [FY2019].

I.II Annual growth in Revenue and Net Profit

Year-ended31 December [FY/2020]31 December [FY/2019]
Revenue, SAR Billion23.933.9
Revenue, $ Billion6.49.0
Growth in Revenue %-29.4-43.5
Net Profit, SAR66.8m5.6b
Net Profit, $17.8m1.5b
Growth in Net Profit %-98.8-74.1

Major changes compared with previous year (FY2020 vs FY2019):

Favourable Changes:

- Working capital to total assets up from 26.1% to 28.6%

- Total current assets to Total Assets up from 38.1% to 41.3%

- Other non-current assets to Total Assets up from 7.1% to 12.6%

- Total Liabilities to Operating Cash Flow of 4.6 compares favourably with the Joseph Piotroski benchmark of <4. However, it has deteriorated by 64.5% from the previous year's ratio of 2.8.

Unfavourable Changes:

- Net profit slumps 98.8% from SAR5.6b ($1.5b) to SAR66.8m ($17.8m)

- Total revenue down 29.4% from SAR33.9b ($9.0b) to SAR23.9b ($6.4b)

- EBIT Margin down from 5.5% to 1.5%

- EBIT to total assets down from 2.5% to 0.6%

- Sales to total assets down 11.1 from 0.5 to 0.4

Year-on-year comparison of Performance Ratios [FY2020 vs FY2019]

December 31FY2020FY2019Change (%)
Return on Equity (%)0.313.1Down 97.7

Currency Conversion (December 31, 2020): $1 = SAR3.75

Currency Conversion (December 31, 2019): $1 = SAR3.75

Five-year record of growth and performance:

In the last 5 years Total Revenue averaged SAR43B ($11.5B), EBITDA averaged SAR15.1B ($4B) and Net Profit averaged SAR12.7B ($3.4B). Compound Annual Growth Rate (CAGR) averaged -30.8% for Total Revenue, -67.6% for Net Profit and -39.1% for EBITDA.

DescriptionAnnual (SAR M)Annual ($ M)5-year Avg (SAR B)5-year Avg ($ B)5-year CAGR %
Total Revenue23,946.56,385.74311.5(30.8)
EBITDA1,749.4466.515.14(39.1)
Operating Profit1,749.4466.515.14(39.1)
Net Profit66.817.812.73.4(67.6)

Five-year record of EBITDA, Operating Profit, Net Profit, ROE and ROCE

In 2020 Net Profit Margin of 0.1% was below its 5-year Avg of 25.6% (All Figures in %)

Description20205-year Avg
EBITDA Margin7.331.5
Operating Profit Margin1.531.5
Net Profit Margin0.125.6
Return on Equity0.321.7
Return on Capital Employed0.75.4

GLOSSARY

ADVT: Average Daily Volume of shares Traded

Annual Return: Dividends Paid In a 12-Month Period/Price at the Beginning of the Period + Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)

Cash/MCap: Cash plus Liquids/Market Capitalisation (times)

Current Ratio: Current Assets/Current Liabilities (times)

Dividend Yield: Dividend Per Share/Share Price (%)

EBIT Margin : Earnings Before Interest and Tax/Revenue (%)

Income during the n years (3/2/1): Dividends received during the Period

Moving Average Price (n periods): Sum of Prices for each Period/Number of Periods

PCP: Previous Corresponding Period

PV1000: Present value of 1000 invested 1 year/'n' years ago

Price Close/Moving Avg Price: Latest Price/Moving Average Price

Price/NTA: Closing Share Price/Net Tangible Assets Per Share (times)

Relative Price Change [RPC]: Relative price change is price change of stock with respect to Benchmark Index

Relative Strength (6 Months): Price close today/Price close 6 months ago, then ranked by percentile within the entire market.

Return on Assets: Net Profit/Total Assets (%)

Return on Equity (Shareholders' Funds): Net Profit/Net Assets (%)

TSR: Total Shareholder Returns is expressed as an annualized rate of return for shareholders after allowing for capital appreciation and dividend

TTM: Trailing 12 Months

Volume Weighted Average Price (VWAP): The Volume Weighted Average Price (VWAP) is the summation of turnover divided by total volume in the same period.

Disclaimer: While this document is based on information sources which are considered reliable, it has been prepared without consideration of your specific investment objectives, financial situation or needs, so you should carry out your own analysis or seek professional investment advice before an investment decision is made. The document contains unbiased, independent equities data and analysis from Jupiter International (Australia) Pty Ltd trading as BuySellSignals (AFS Licence 222756), who provide round the clock analysis on every stock, every sector, every market, every day. BuySellSignals is not a broker, and does not have executing, corporate advisory or investment banking functions. Jupiter International (Australia) Pty Ltd, its directors, employees and contractors do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.

Data for the BuySellSignals algorithms is drawn from annual reports, company websites and similar sources of publicly available data. It should be used as a guide only.

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