JEDDAH: Saudi Arabia’s Rabigh Refining And Petrochemical Co. (PetroRabigh) reported it swung to a net loss in the third-quarter, citing lower margins on petrochemical products and weak oil prices for the slump.

The firm, a joint venture between Saudi Aramco and Japan’s Sumitomo Chemical, lost SR460 million ($122.7 million) in the three months to Sept. 30, it said in a bourse statement.

This compares with a net profit of SR294 million in the year-ago period.

It said the main reasons for the losses were lower margins on petrochemical products, the continuous decline in oil prices, low lifting by marketers, as well as its build-up of inventory from its complex shutdown in the fourth quarter.

Saudi petrochemicals producers benefit from subsidized oil, while product prices are closely linked to those of crude so the slump in oil prices has narrowed the margins of the kingdom’s various manufacturers.