Saudi Basic Industries Corp (SABIC), the world’s biggest petrochemicals group by market value, posted a 13.96 per cent rise in its second quarter net profit, but missed anlaysts’ forecasts.
SABIC, which is 70-per cent state owned, said its net income for the three months to June 30 was 6.04 billion Saudi riyals ($1.61 billion) compared with 5.3 billion riyals in the same period last year.
Ten analysts surveyed by Reuters forecast SABIC would earn, on average, 6.4 billion riyals for the second-quarter.
SABIC attributed the increase in net income to a decrease in cost of sales and financial charges, despite reduced revenues due to lower sales prices for certain products, according to a statement on the Saudi bourse.
Concerns over slowing global economic growth has weighed down on SABIC’s financial performance in recent quarters as demand for its main products such as petrochemicals, metals and fertilisers slows. SABIC’s products are used extensively in construction, car manufacturing and other major consumer goods.