Oil slump cuts Sabic’s Q4 profit by 29%

The Gulf’s largest listed company earned SR4.36 billion ($1.16 billion) in the three months to December 31 compared to SR6.16 billion a year earlier, Sabic said in a bourse statement.

By (Reuters)

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Published: Mon 19 Jan 2015, 11:44 PM

Last updated: Fri 26 Jun 2015, 12:10 AM

Dubai — Saudi Basic Industries Corp (Sabic), one of the world’s largest petrochemicals groups, reported a 29 per cent plunge in fourth-quarter net income on Sunday, widely missing analysts’ forecasts because of the tumble of global oil prices.

Chief executive Mohamed Al Mady told reporters his company’s outlook for 2015 depended on oil prices and was therefore unpredictable, but that Sabic faced challenges early in the year. Oil, which is closely tied to petrochemical product prices, has tumbled more than 50 per cent since last June.

The Gulf’s largest listed company earned SR4.36 billion ($1.16 billion) in the three months to December 31 compared to SR6.16 billion a year earlier, Sabic said in a bourse statement, as sales sank 10 per cent from a year ago to SR43.4 billion.

Profit was well below the average forecast of analysts polled by Reuters, who had predicted earnings of SR5.50 billion. It was also below the company’s third-quarter net profit of SR6.18 billion.



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