Saudi’s SABIC Q3 net profit up 5.4% on higher selling price

Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals company, reported a 5.4 per cent rise in third-quarter net profit on Sunday, citing higher average selling prices and increase in sale volumes.

SABIC made a net profit of SAR6.1bn ($1.63bn) in the three months to September 30, up from SAR5.8bn in the year-earlier period, the company said in a bourse statement.

Analysts expected SABIC to make a net profit of around SAR5.8bn in the third quarter, according to the average of estimates of three analysts polled by Refinitiv.

Read: Saudi Aramco may borrow up to $50bn from banks for SABIC deal

The company’s results are closely tied to oil prices and global economic growth because its products – plastics, fertilisers and metals – are used extensively in construction, agriculture, industry and the manufacturing of consumer goods.

Saudi national oil giant Aramco is in talks with the Public Investment Fund to buy its controlling stake in SABIC.

Saudi Energy Minister Khalid Al-Falih said last week he expected the details of the SABIC deal to be finalised within the first half of 2019, Saudi state TV al-Ekhbariya quoted him as saying.