Project Report

 

 

Presentation for “The impact of Covid-19 on The Petrochemical Companies in Saudi Arabia”

 

·         History is reviving itself; as we know that a new virus originated from China and spreading continually across the world. This virus is known as Covid-19. My presentation object of this research is to show you how this pandemic impact on Saudi Arabian's Petrochemical Industry.

·         Petrol prices: The average price for Saudi Arabia through that period was 1.19 SAR with at least of 0.82 Saudi Riyal on 11-6-2020 and a maximum of 2.05 SAR on 06-4-2020. As its compare the average rate of petrol in the world for this time is 4.32 SAR

·         Saudi multinational chemical manufacturing company (SABIC) reported a fourth-quarter net loss of 720 million SAR (191.94 million dollars), the first quarterly loss in above a decade, owing to lower average export values and a write-down at an associate.

·         LPG prices: We show prices for Saudi Arabia from 06-4-2020 to 13-7-2020. The average price for Saudi Arabia in that period was 0.75 SAR with at least of 0.75 Saudi Riyal on 06-4-2020 and a maximum of 0.75 Saudi Riyal on 06-4-2020. For contrast, the average value of auto gas in the world for this period is 1.31 SAR.

·         The rate of Brent crude fell to 27.67 dollar a barrel at one point, it’s lowermost then 2003, while US crude fell as low as 28.36 dollar.

 

·         Saudi Arabia current economic shortfall to extend to 10% of the GDP, and expected to fell more 8.6%.

·         According to SABIC, chemical firms of Saudi Arabia assumed to make a loss of nine hundred fifty Million SAR (about 253 million dollars) in the first part of this year 2020 associated with net revenue of nine hundred and nine million dollars in the same quarter last year.

• KSA has money assets of above five hundred billion dollars & can bear the crisis that the worth war involves, assessed at seventy billion dollars to hundreds of billion dollars each year. But the down values of Oil and Gas badly ruin Saudi Arabia's capability to skirmish its Vision year 2030 goal.
• KSA might borrow around twenty-six billion dollars further this year and will draw-down up-to thirty-two billion dollars from its assets to economics a government shortfall caused through lesser oil values and the coronavirus crisis.
• According to "William Jackson (Capital Economics), Even if the oil rates stayed to drop to twenty-five dollars per barrel, KSA control is capable of economics a current account shortfall.
• The Saudi Arabia Management has stated a set of support packages aiming the private sector, totaling nearly 61 billion dollars.
• The KSA government has just announced a 120 billion Riyals (31.9 billion dollars) economic incentive package to mitigate the financial impact of the coronavirus eruption in the Nation. This incentive package is made up of 70 billion riyal (18.6 billion dollar) to care the private sector and central bank’s 50 billion riyal (13.3 billion dollars) to support the banking subdivision.