SABIC posts lowest quarterly profit in 5 years: Argaam Research

Saudi Basic Industries Corp (SABIC), the Middle East’s largest maker of petrochemicals, reported the lowest quarterly profit in five years, according to research conducted by Argaam.

SABIC’s first quarter profit dropped 39 percent to SAR 3.9 billion (SAR 1.31 a share).

The largest petrochemicals producer in the kingdom posted a detailed financial statement for first quarter 2015 showing a considerable decline in revenue, with its income margin below 30 percent for the second consecutive quarter.

The petrochemical sector’s profit plunged 62 percent in the first quarter, compared to the same period last year, and 50 percent compared to Q4-2014.

Steel and fertilizer profits declined 37 percent and 68 percent, respectively in the first quarter, compared to the same period last year.

Assets in 2015 dropped 2 percent to SAR 339 billion, compared to last year’s. Shareholders’ equity rose 2 percent to SAR 166 billion, bringing the book value of each share to SAR 55.4.

Cash and equivalents added 7 percent to SAR 80 billion in the first quarter, a two-year high.

Net debt dropped to SAR 2.4 billion.

Short-term loans, which should be paid off in 12 months, were SAR 13.9 billion by the end of March, compared with SAR 5.7 billion in the same period last year.

Argaam Reports