Sabic said lower sales were 'driven by global slowing demand growth coupled with a slow start of the year and relatively high level of inventories'
Saudi Basic Industries (Sabic) said lower prices for petrochemicals dragged first quarter profit down 38.1 percent, missing analyst estimates.
The Middle East’s biggest petrochemicals maker reported 3.41 billion riyals ($910 million) in first quarter profit, Sabic said in a statement.
The average of analyst estimates was 4.04 billion riyals, according to data compiled by Bloomberg.
State-owned Saudi Aramco agreed to buy a majority stake in Sabic, as the company is known, from the kingdom’s sovereign wealth fund.
Lower sales were “driven by global slowing demand growth coupled with a slow start of the year and relatively high level of inventories,” Sabic said. It expects 2019 performance “to be in-line with global petrochemical industry trends.”