April 23 (Reuters) – Dow Inc on Thursday reported a smaller-than-expected first-quarter loss, as cost cuts helped offset weaker prices and volumes, while disruptions from the Middle East conflict weighed on operations, including its Sadara joint venture in Saudi Arabia.
The company said it stopped recognizing losses from Sadara in the first quarter after its liabilities reached the level of its existing obligations under accounting rules.
Sadara Chemical, a joint venture between Dow and Saudi Aramco, recently shut down production temporarily at its petrochemicals complex in Jubail, citing ongoing supply chain disruptions from the Iran war.
Dow has also been reevaluating its ownership of non-product-producing assets across its global portfolio, including power and steam production and pipelines, as the chemical industry struggles with higher feedstock and energy costs, as well as weak demand in key end markets.
“We are already seeing rapid positive momentum from our announced pricing actions in every business and every region, as well as constructive impacts to our operating rates,” said CEO Jim Fitterling.
Shares of Dow fell 1.2% in premarket trading.
The Michigan-based company reported an adjusted loss of 14 cents per share for the quarter ended March 31, compared with analysts’ average estimate of a loss of 29 cents per share, according to data compiled by LSEG.
(Reporting by Pooja Menon in Bengaluru; Editing by Tasim Zahid)
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