Saudi Basic Industries Corp. (SABIC) fell to the lowest level in a week after the world’s largest petrochemical maker said third-quarter sales dropped 8 percent.
The shares declined 0.6 percent to 90.25 riyals at the close in Riyadh, the lowest since Nov. 5. The benchmark Tadawul All Share Index lost 0.5 percent.
Sales dropped to 44.8 billion riyals ($11.9 billion), the company known as Sabic said in a regulatory filing today. Sabic said on Oct. 17 third-quarter profit tumbled 23 percent as prices for its products dropped amid slower global economic growth. Profit has fallen in the past four quarters as the maker of fertilizers, plastics and steel suffers from the effects of slowing growth in developed economies.
Sabic’s third-quarter sales were “a bit below expectations, primarily due to lower petrochemical prices in the third quarter,” Muhammad Faisal Potrik, an analyst at Riyad Capital, said by phone. “Ethylene prices were down 5 percent quarter-on-quarter, so that also had an impact.” He had estimated third-quarter sales at around 46 billion.
Fifteen analysts have a buy rating on Sabic shares, one recommends a hold, and none says sell, according to data (SABIC:US) compiled by Bloomberg.
To contact the reporter on this story: Sherine El Madany in Dubai at firstname.lastname@example.org
To contact the editor responsible for this story: Alaa Shahine at email@example.com