Saudi Basic Industries Corporation (Sabic) registered a 25 per cent decline in net profit for the second quarter, which it attributed to low revenues from its steel unit Hadeed.

Sabic incurred a net loss of around SR483m ($128m) in the second quarter compared with net income of $23m for the same period last year.

In a statement to the Saudi Stock Exchange (Tadawul), the petrochemical giant said the decrease in net income was attributable to lower average selling prices and higher cost of sales as well as write down of assets at its industrial fibres company Ibn Rushd.

In December, MEED reported that Sabic was considering spinning off its steel business unit by mid-2017. The plan would mean Hadeed becomes an independent company, with Sabic retaining 100 per cent ownership of the steel firm.