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Saudi SABIC Q3 Profit Falls 4.5%, Misses Estimates

Saudi SABIC Q3 Profit Falls 4.5%, Misses Estimates

SABIC, which is 70 per cent state-owned, attributed the fall in profits to a drop in sales and other income, although its cost of financing was lower.

Saudi Basic Industries Corp (SABIC), one of the world’s largest petrochemicals groups and the Gulf’s largest listed company, reported a 4.5 per cent drop in third-quarter net income on Sunday, missing analysts’ forecasts.

It earned SAR6.18 billion ($1.65 billion) in the quarter, compared to SAR6.47 billion in the year-earlier period, SABIC reported in a bourse statement.

SABIC, which is 70 per cent state-owned, attributed the fall in profits to a drop in sales and other income, although its cost of financing was lower.

Earnings were below the average forecast of nine analysts polled by Reuters, who had predicted a quarterly profit of SAR6.63 billion.

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

SABIC chief executive Mohamed al-Mady said in July that the outlook for petrochemical demand over the next three years was positive and there was room for prices to rise.

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