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FINANCIAL NEWS
Saudi SABIC reports 5% drop in Q1 profit
17 Apr 2012
(MENAFN) Saudi Basic Industries Corp (SABIC) reported five percent drop in quarterly profits, hit by higher costs and a slowdown in Chinese demand, Reuters reported.
The world’s largest petrochemical group by market value said it made USD1.94 billion net profit in the first quarter.
CEO Mohamed Al Mady said that higher oil prices impacted on raw materials cost, and the slowdown in the Chinese economy lead to lower demand.
SABIC’s profits saw dwindled in the fourth quarter of 2011 after two successive quarters of record profits achieved on the back of surging product prices and strong global demand.
Mady said that SABIC plans to launch an iron plant by the end of this year, with an output capacity of 500,000 tonnes a year, which would help boost the firm’s products volume.
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