Saudi Basic Industries Corp. (SABIC), one of the world's largest petrochemicals groups, reported a 23.2 percent drop in second-quarter net profit on Wednesday, extending a earnings slump as lower sales prices continued to weigh.
SABIC made a net profit of SR4.74 billion ($1.26 billion) in the three months to June 30, down from SR6.17 billion in the year-earlier period, the company said in a bourse statement.
The result was ahead though of the 3.92 billion riyal average estimate of five analysts polled by Reuters.
SABIC attributed the profit fall to lower average sales prices, in addition to an impairment on the assets of Ibn Rushd, an affiliate of SABIC. The company's results are closely tied to oil prices and global economic growth because its products are used extensively in construction, agriculture, industry and the manufacturing of consumer goods.
Saudi petrochemical companies are also having to adjust to government energy and gas feedstock reforms which will raise their costs.
From the first quarter of 2016, SABIC's total annual costs before minority interests will rise by around 5 percent.

Source: Arab News