SABIC posts 95% YOY slide in Q4 net profit on declining petrochem demand, credit crunch

21-Jan-09

SABIC has reported a year-on-year decline of 95% net profit in the Q4 - 2008 to SAR 311 mln compared with SAR 6.87 bln in same period of 2007 and a quarterly slide of 96% from last quarter's SAR 7.24 bln owing to the decline in demand for petrochemical products and metals due to economic recession hitting major economies and the global credit crunch. The decline in petrochem demand particularly specialty plastics, arising from the crisis afflicting the global automotive industry and building and construction sectors, has had a strong impact on the performance of SABIC affiliates outside Saudi Arabia. Accordingly, its affiliates are restructuring their businesses to improve performance through a reduction in costs, the company statement said. SABIC's net profit for the twelve month period ended on December 31, 2008 stood at SAR 22 bln, compared to SAR 27 bln for the same period in 2007, a decrease of 19% while its total production quantities during 2008 rose by 2% while the quantities sold have decreased by 1% compared with the previous year.