Sabic Q3 net profits drop 23%

RIYADH — Saudi Basic Industries Corp. (Sabic), the world’s biggest petrochemicals group by market value, Wednesday posted a 23 percent slump in third-quarter net profit, citing lower product pricing for the decline.

The chemicals, metals and fertilizers conglomerate earned net income of SR6.3 billion ($1.68 billion) in the three months ended Sept. 30, compared with a record profit of SR8.2 billion a year ago, it said in a bourse statement.

Despite the decline, the performance beat analysts’ forecasts. Nine analysts polled by Reuters had forecast on average that Saudi Arabia’s largest listed company would earn SR6.01 billion in the quarter.

Several Sabic units had already reported their quarterly results, with Saudi Arabian Fertilizer Co. (Safco) saying its net profit dipped 5.1 percent, and Yanbu National Petrochemical Co. (Yansab) reporting a halving of income.

Analysts say outlook for next quarter is little better, but Sabic should benefit in 2013 from the addition of significant new revenue from its Saudi Kayan unit, which will start full operations. — Reuters