Saudi Arabia’s stocks gauge ended Sunday’s session higher even after the country’s biggest publicly traded company reported profit for the second quarter that was the lowest in a decade.
Saudi Basic Industries Corp.’s net income dropped to 2.12 billion riyals ($565 million) in the three months ended in June, shrinking 68 percent from last year, as lower petrochemical prices impacted performance.
The biggest petrochemicals maker in the Middle East fell as much as 3.8 percent in Riyadh, before trimming the loss to 0.7 percent at close. Sabic is the third-largest individual constituent of the main Saudi gauge.
“The new capacities in key products lines that pressured Sabic’s product prices and margins in the first half of 2019 are expected to continue to impact the company’s earnings in the second half of 2019,” the company said.
Saudi Aramco, the world’s biggest oil producer, is in the process of buying a majority stake in Sabic from the kingdom’s sovereign wealth fund for $69.1 billion. The Middle East’s biggest-ever deal had been first mooted last year after the initial public offering of Aramco was postponed.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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