Saudi Arabia’s SABIC announces weaker results for Q1

According to media reports, Saudi Basic Industries Corp (SABIC) reported weaker financial results for the seventh consecutive quarter. The company’s net profit fell 13.2% to SAR3.41 billion ($909.4 million) in the first quarter of 2016 from SAR3.93 billion in the January-March period of 2015. The company’s Q1 profit missed Reuters’ analysts’ estimates, which called for a quarterly net profit of SAR2.84 billion.

The company’s weaker results were attributed to lower average sales prices, softer oil prices and slowing global economic growth.

Saudi petrochemical companies had previously said that they will be facing higher costs following an announcement from the Saudi government of price increases on fuel, water, electricity and gas feedstocks. Accordingly, SABIC’s total annual costs are expected to rise by around 5% as of the first quarter of 2016.