Saudi Basic Industries Corp. (SABIC) reported a 10-percent drop in quarterly profits on Tuesday, missing forecasts, as the world\'s biggest petrochemical firm by market value felt the impact of lower prices globally. SABIC made a net profit of SR5.24 billion ($1.40 billion) for the three months to end December, compared with SR5.81 billion in the same period a year earlier. Analysts surveyed by Reuters expected the firm to post, on average, a net profit of SR7.1 billion for the second quarter. The bellwether Middle East conglomerate, which supplies chemicals, industrial polymers, fertilizers and metals globally, had posted record profits in the second and third quarters last year. \"The economic situation in Q4 impacted but we started to see an improvement in prices and we hope it improves further,\" Chief Executive Mohamed Al-Mady told reporters. \"My prediction is that 2012 will be a mirror image of 2011 and that 2013 will be even better.\" Al-Mady said fourth quarter sales rose to SR47 billion, from SR40.8 billion in the prior-year quarter. On the year, SABIC had sales of SR190 billion, up from SR151 billion in 2010. Over the past year, several SABIC subsidiaries have brought on stream new production lines, increasing the company\'s sales volumes at a time of high chemical prices. Strong oil prices last year also enhanced the comparative advantage enjoyed by Saudi chemical producers, which typically use gas feedstock, over their global rivals which buy naphtha at prices linked to crude. However, the sector\'s dependence on highly cyclical machinery makers, carmakers and builders makes SABIC, which is 70 percent state owned, particularly vulnerable to an economic downturn. In November SABIC said it was setting up a venture capital arm, based in the Netherlands, to expand beyond petrochemicals into innovative technology companies. SABIC shares closed 2.1 percent lower on the Saudi Arabian bourse ahead of the results.
GMT 00:37 2018 Wednesday ,24 January
Bitcoin slumps below $10,000GMT 22:49 2018 Tuesday ,23 January
Sharjah apartment rents see steep decline in 2017GMT 19:15 2018 Tuesday ,23 January
Emirati fined Dh2.2m for embezzling public fundsGMT 22:27 2018 Monday ,22 January
Jafza bridge benefits trade, logistics supply chainGMT 22:21 2018 Monday ,22 January
Damac chairman to speak on digital skillsGMT 10:55 2018 Monday ,22 January
Bahrain-Indian economic ties discussedGMT 22:42 2018 Saturday ,20 January
'Massive' infrastructure spending needed in AfricaGMT 12:49 2018 Tuesday ,16 January
Tabarak Buys Majority Stake in a Private CompanyMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor