SABIC profit fell to SR 2.1 billion

Saudi Basic Industries Corp (Sabic), the fourth largest petrochemical company in the world, reported a 68% drop in net income in the second quarter, citing lower average selling prices for its products and a lower share of the group in results of its badociates and joint ventures.

SABIC said its net profit after Zakat and taxes amounted to 2.12 billion riyals ($ 565 million) for the quarter ended June 30, down 68.7% from 6.7 billion a year ago.

"The slowdown in global GDP growth, combined with the decline in petrochemical prices due to the sharp increase in supply, has resulted in lower commodity prices and margins for major commodities," the report said. Vice President of SABIC, Yousuf Abdullah Al Bunyan, in a statement.

SABIC said that the increase in global commodity production, which negatively affected prices and product margins in the first half of the year, is expected to continue to affect the company's profits in the second half of the year, semester of 2019 too.