Hadeed SABIC posts weak results in 2020 due to Coronavirus
Despite some signs of improvement in the demand and price situation, seen in H2, Saudi Iron & Steel Company (Hadeed SABIC), the key local steelmaker, was unable to reverse the negative trend in operational and financial figures. Like most GCC steel producers, The company recorded results in 2020 less than in 2019 due to the Coronavirus pandemic.
In October-December 2020, Hadeed SABIC increased revenue by 8% to SAR 2.35 billion ($0.63 million; $1 = SAR 3.75) quarter-on-quarter, according to the official statement. The positive dynamics was mainly attributed to strong prices rather than the sales volume.The average selling prices gained 18% over the reported period, while the shipment dropped by 10%.
These positive developments had little impact on the annual results, which mirrored the complicated situation in the steel segment of not only Saudi Arabia, but also globally. In 2020, Hadeed SABIC’s revenue decreased by 17% to SAR 8.99 billion ($2.4 billion) year-on-year, while the losses deepened by 56% to SAR 1.55 billion ($0.41 billion). The company posted negative EBITDA at SAR 0.59 ($0.16 billion) compared to positive SAR 0.28 billion ($0.07 billion) in 2019. The average sales prices fell by 12%, while volumes by 5% over the year.