Saudi’s SABIC Q2 net profit falls slightly, beats forecasts
SABIC, which is 70 percent state-owned, blamed the profit fall on lower average sales prices
Saudi Basic Industries Corp (SABIC), one of the world's largest petrochemicals groups, reported a 4.5 percent drop in second-quarter net profit on Sunday, a much smaller decline than analysts had forecast.
SABIC made a net profit of 6.17 billion riyals ($1.64 billion) in the three months ending June 30, down from 6.46 billion riyals in the year-earlier period, the company said in a bourse statement.
This was above the average forecast of seven analysts polled by Reuters, who had predicted SABIC would make a quarterly profit of 4.96 billion riyals.
SABIC, which is 70 percent state-owned, blamed the profit fall on lower average sales prices, although it added that sales costs also declined.
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.
Lower oil prices adversely affected SABIC's earnings in the final quarter of 2014 and the company warned in January that 2015 earnings would be unpredictable, with challenges especially prominent in the early part of the year.
In April, the company said its first quarter net profit dropped 39 percent, attributing the slide to oil and petrochemical product prices.
Tax-free UAE lured many but future tariff law worries expats, businessesThe UAE has long toyed with the idea of introducing taxes, especially with last year’s plunge in oil prices Banking & Finance
Algeria trims spending as sees energy revenues down 50 pct this yearOil and gas account for 95 percent of Algeria's exports and energy revenues make up 60 percent of the budget Economy
Oil dips on glut concerns as Iran exports loomCrude oil prices slipped lower on Monday as a UN Security Council vote highlighted the prospect of Iranian oil returning to the global market Financial Markets
Oil edges lower as Saudi crude exports fall, U.S. cuts drill rigsOil prices edged lower on Monday as data showed Saudi Arabian exports fell to the lowest in five months despite record output, while a resurgence in U ... Economy