MOSCOW (MRC) -- Saudi Basic Industries Corp (SABIC), one of the world's largest petrochemicals groups, reported a 6.8 percent drop in third-quarter net profit, extending a profit slump amid a decline in the price and volume of sales, said Reuters.
SABIC made a net profit of 5.22 billion riyals (USD1.39 billion) in the three months to Sept. 30, down from 5.60 billion riyals in the year-earlier period, the company said in a bourse statement.
Five analysts polled by Reuters had on average forecast that SABIC would make a quarterly profit of 5.05 billion riyals.
SABIC attributed the profit fall to lower average sales prices and a reduction in the quantity of products sold, which outweighed the benefits gained from a decrease in costs.
Lower oil prices have adversely affected SABIC's earnings, with the company's profits falling in the eight preceding quarters, Reuters data shows.
The company's results are closely tied to oil prices and global economic growth because its products -- plastics, fertilisers and metals -- are used extensively in construction, agriculture, industry and the manufacturing of consumer goods.
As MRC informed earlier, SABIC aims to grow its way out of an extended earnings slump brought on by the impact of lower oil prices on the petrochemicals sector.
Saudi Basic Industries Corporation (SABIC) ranks among the worldпїЅs top petrochemical companies. The company is among the worldпїЅs market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
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