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April 28 (Reuters) – Saudi Basic Industries Corp. (SABIC), the world's fourth-largest petrochemical group, announced a 38 percent drop in first-quarter net income due to lower average selling prices and badysts' expectations .
SABIC posted net profit of 3.41 billion Saudi riyal (909 million dollars) as of March 31, against 5.51 billion riyals in one year, the company said Sunday in a statement.
Analysts expect SABIC to make a net profit of 3.98 billion riyals in the first quarter, based on the average of five badysts' estimates polled by Refinitiv.
According to SABIC, average prices fell 8% quarter-on-quarter, reflecting slowing global demand, a slow start to the year and a relatively high inventory level.
He expects SABIC's performance to be in line with trends in the global petrochemical industry, although it warns that global economic growth will be weaker this year.
The company's results are closely linked to oil prices and global economic growth, as its products – plastics, fertilizers and metals – are widely used in construction, agriculture, industry and consumer goods manufacturing. .
The Saudi national oil giant Aramco concluded last month an agreement with the Public Investment Fund to buy back its controlling stake in SABIC for $ 69.1 billion. ($ 1 = 3.7508 riyals)
Report by Saeed Azhar; edited by Richard Pullin
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