Saudi Arabia’s chemicals producer Saudi Basic Industries Corporation Sabic has reported a 39 per cent decline in profits in the first quarter of this year, a fall blamed on low oil prices.

The company has posted net profits of SR3.93bn ($1.05bn), which compares with $6.44bn recorded in same quarter as last year.

The first quarter results were also 10 per cent less than the company’s fourth quarter results.

Sabic’s yearly net income has been relatively stable since 2011, ranging between SR188bn and SR190bn. The company’s biggest drop in yearly income was recorded in 2009 when income fell by 33 per cent, a decline prompted by low oil prices and the global finance crisis.

Sabic is the world’s largest producer of petrochemicals such as polyethylene and polypropylene.

Despite the fall in profits, Sabic is still pushing ahead with several projects.

Last year, it announced plans to build a 200,000 barrel-a-day oil-to-chemicals plant at Yanbu on the Red Sea coast of Saudi Arabia. The project remains at an early study phase.