Saudi Basic Industries Corp (SABIC) reported a 4.5% drop in the third quarter of 2014, missing analysts’ forecast, Reuters reported.
The company earned $1.65bn for the estimated period compared to $1.72bn the year before. SABIC, which is 70% state-owned, said in a statement that the fall in profits was due to a drop in sales and other income, although its cost of financing was lower.
The news come at a time when falling oil prices are having a negative impact on OPEC members’ petchemical sector. SABIC’s earnings were below the average forecast of analysts polled by Reuters, who had predicted a quarterly profit of $1.77bn.Â
The company’s chief executive Mohamed al-Mady said in July that the outlook for petrochemical demand over the next three years was positive and there was room for prices to rise. One of the world’s largest petrochemicals groups, SABIC is also the Gulf’s largest listed company.
