RIYADH: Saudi Basic Industries Corp (Sabic), the world’s biggest petrochemicals group, posted a 10 percent year-on-year fall in its first quarter net profit yesterday and warned that growth would likely not improve until next year.
The dip in profits, in line with analyst expectations, was mostly due to lower production and sales volumes because of planned maintenance at factories of some affiliates, it said in a statement.
“I am hopeful about the future but you need the time for shake out (of global economic difficulties), which is this year. Once we shake out these things, we will come back to good recovery in the next couple of years,” said Sabic chief executive Mohamed Al Mady at a press conference.
Net income for the three months to March 31 was SR6.56bn ($1.75bn) compared to SR7.27bn in the same period last year. Sabic’s sales were SR46.74bn, a 3.3 percent dip from the SR48.34bn sales in the first quarter of 2012.
However, Sabic also said first-quarter profit had risen from SR5.83bn in the fourth quarter of 2012. It cited higher sales prices of some products, which it did not name.
Eleven analysts surveyed by Reuters had forecast Sabic would earn, on average, SR6.59bn in the first quarter.
Mady said he could not predict global petrochemical prices for this year but thought 2013 would be similar to 2012, with improvement in prices occurring after 2013. The company is reviewing its global growth outlook, especially in light of the weak economic situation in Europe, he added.
Reuters
