Sabic Profit Surges as Plastic, Chemical Demand Rises

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Saudi Basic Industries Corp., the world’s largest petrochemicals maker, said fourth-quarter profit surged more than expected as the global economic recovery lifted demand and prices for plastics and fertilizers.

Net income increased to 4.58 billion riyals ($1.22 billion), from about 310 million riyals a year earlier, Riyadh- based Sabic said today in a statement today. That beat the average estimate of seven analysts surveyed by Bloomberg for a 3.55 billion-riyal profit.

“The petrochemical and fertilizer pricing environment has shown an improvement in the fourth quarter of 2009,” Laurent- Patrick Gally, vice president of research at Shuaa Capital PSC, said before the announcement. He has a “buy” rating on the shares.