DUBAI: Saudi Basic Industries Corp. (SABIC) reported a 35-percent drop in quarterly profits yesterday due to lower prices and production, missing analysts' estimates.
SABIC, which is 70-percent state-owned, said second quarter net profit was SR 5.3 billion for the quarter ended June 30, down from SR 8.1 billion in the prior-year period.
It declared a SR2 per share dividend yesterday, for the first half of 2012.
The bellwether Middle East conglomerate, which supplies chemicals, industrial polymers, fertilizers and metals globally, blamed the lower profits on a combination of weaker product pricing, the impact of plant maintenance on production and sales volumes as well as higher raw materials costs.
SABIC's profits had fallen in the two previous quarters amid slipping demand in China. But record earnings in the second and third quarter of 2011 helped it achieve a bumper year.
SABIC profits fall 35% to SR 5.3 bn
