The Saudi Basic Industries Corporation (SABIC), one of the largest petrochemical companies in the world, announced on Thursday that it had recorded a decline of about 17 percent in third-quarter revenues and a net loss.

SABIC said in a disclosure that it recorded a net loss of 2.88 billion riyals ($768 million) during the three months until September 30, compared to profits of 1.84 billion riyals a year ago.

The loss mainly resulted from the cost of impairment of provisions amounting to 2.93 billion riyals below the fair value of the Saudi Iron and Steel Company (Hadeed) after the Public Investment Fund, the Kingdom’s sovereign wealth fund, acquired SABIC’s entire stake in the company.

SABIC added that it was agreed to withdraw SABIC’s investment in Hadid in September, allowing the Saudi petrochemical giant to “enhance its strategic investment portfolio and focus on its core activities.”

Revenues fell to record 35.98 billion riyals, compared to recording 43.32 billion riyals a year ago, but the number represented an increase of about six percent on a quarterly basis.

SABIC said that the global petrochemical market is still witnessing weak global demand and an increase in supply for most products, and the average selling price decreased by five percent on a quarterly basis, while the prices of agricultural nutrient products increased by 11 percent.

The company announced that it remains disciplined in managing its capital expenditures, which it estimates will range between $3.5 billion to $3.8 billion in 2023.

Chemical manufacturing companies indicated that their business may suffer a blow in the second half of the year due to the slower-than-expected recovery in China after the pandemic and the decline in demand in Europe.