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FINANCIAL NEWS
Saudi SABIC reports USD1.4b profit in Q2
18 Jul 2012
(MENAFN) Petrochemicals giant Saudi Basic Industries Corp (SABIC) posted a 35 percent decline in second-quarter net earnings on lower prices and output, Reuters reported.
The world’s largest petrochemicals group by market value said it made USD1.41 billion net profit during the quarter, down from USD2.16 billion a year earlier.
The group, 70 percent state-owned, said weaker product pricing, and lower output due to plant maintenance, combined with higher raw materials costs shrank its earnings.
This is the third quarterly drop in profits in a raw. SABIC’s profits had declined in the two previous quarters due to slower demand.
SABIC enjoys a comparative advantage over some other chemical producers because much of its feedstock comes from subsidized natural gas supplied by the government.
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