Saudi’s SABIC Q3 net profit up 10.7% on higher prices, sales

Saudi Basic Industries Corp (SABIC), the world’s fourth-biggest petrochemicals company, reported a 10.7 per cent rise in third-quarter net profit on Sunday, beating analysts’ estimates.

SABIC made a net profit of SAR5.79bn ($1.54bn) in the three months to Sept. 30, up from SAR5.23bn in the year-earlier period, the company said in a bourse statement.

The net profit was better than the average net profit forecast of SAR4.27bn by four analysts.

SABIC, which aims to be number 3 petrochemicals producer, attributed the profit rise to to higher average selling prices and higher sales quantities.

The company’s results are closely tied to oil prices and global economic growth because its products — plastics, fertilisers and metals — are used extensively in construction, agriculture, industry and the manufacturing of consumer goods.