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The world’s biggest chemicals maker said profit margins would remain tight with the Chinese market yet to recover and the global economic downturn weakening demand for plastics and building materials.
Saudi Basic Industries Corp.’s net income dropped to 290 million riyals ($78 million) in the fourth quarter, down 94% year-on-year and the worst figure since the height of the coronavirus pandemic in mid-2020.
The stock fell 3.7% on Tuesday to 88.50 riyals, the biggest decline this year.
The ending of Covid lockdowns in China hasn’t led to a rapid rebound in consumption in the world’s second-largest economy, according to Abdulrahman Al-Fageeh, Sabic’s acting chief executive officer.
“Things in China are still roughly the same as they were in 2021,” he said to reporters. “So far we have not seen the high demand that was expected. It seems to me that the second quarter or the second half may witness the return of the Chinese market.”
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