By Hadeel Al Sayegh
DUBAI (Reuters) -Petrochemicals firm Saudi Basic Industries Corp (SABIC) said on Tuesday its fourth-quarter net profit slumped 94% on lower average sales prices.
SABIC posted a net income of 0.29 billion riyals ($77.28 million) in the three-month period ended Dec. 31, down from 4.97 billion riyals in the year-ago period.
Prices across the main petrochemicals segments, chemicals, polyethylene and performance polymers came in lower in the fourth quarter, SABIC said, adding that margins are expected to continue being under pressure in the first half of 2023, partly due to slow demand.
Net income attributable to shareholders for the year 2022 came in at 16.53 billion riyals, down 28% from the previous year.
The petrochemicals company’s earnings are closely related to oil prices and global economic growth as its products – plastics, fertilisers and metals – are used extensively in construction, agriculture, industry and for the manufacturing of consumer goods.
($1 = 3.7527 riyals)
(Reporting by Hadeel Al Sayegh; Editing by Nivedita Bhattacharjee and Sherry Jacob-Phillips)
