SABIC's quarterly profit drops 85% on lower sales prices | Reuters
Saudi Basic Industries Corp (SABIC) (2010.SE), one of the world's biggest petrochemical companies, said on Thursday its second-quarter net profit slumped 85% on lower average sales prices.
The company posted net income of 1.18 billion riyals ($314.6 million) in the three months to June 30, compared with 7.93 billion riyals a year earlier.
"The global economy is continuously slowing down as a result of tightening monetary policies to confront inflation, leading to weaker demand and a decrease in the average selling prices of the company's products as well as lower quantities sold," SABIC said in its earnings release.
SABIC's earnings are closely related to oil prices and global economic growth as its products - plastics, fertilisers and metals - are used extensively in construction, agriculture and industry, and in making consumer goods.
The company said it remains disciplined in managing its capital expenditures, estimating a $3.3 billion to $3.8 billion spend in 2023.
Despite current market challenges, the company said it aims to maintain a stable to growing dividend. The board in June approved a cash dividend distribution of 1.80 riyals per share for the first half of 2023.
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