(Reuters) DUBAI – Saudi Basic Industries Corp. (SABIC), a petrochemicals company, reported on Tuesday that reduced average sales prices were the primary reason for a 94% decline in fourth-quarter net profit.
In contrast to the same time a year ago, SABIC reported a net income of 0.29 billion riyals ($77.28 million) for the three months that ended on December 31.
According to SABIC, prices declined in the fourth quarter across the major petrochemical segments: chemicals, polyethylene, and performance polymers. Margin pressure is anticipated to persist in the first half of 2023, in part because of sluggish demand.
In 2022, net income attributable to stockholders was 16.53 billion riyals, a 28% decrease from the previous year.
Because plastics, fertilisers, and metals are widely used in building, agriculture, industry, and the production of consumer goods, the petrochemical company’s profits are closely tied to oil prices and global economic development.
(1 dollar equals 3.7527 riyals).
