Sabic sees profit growth slow

21 April 2008
Saudi Basic Industries Corporation (Sabic) reported a slowing in profit growth in the first quarter, due to increased feedstock prices and sluggish demand in the US and Europe.

The Riyadh-based company posted a 10 per cent increase in profit for the first three months of 2008, taking the figure to SR6.9bn ($1.67bn), compared with SR6.3bn for the same period in 2007.

The 10 per cent rise was the slowest growth in profits since the second quarter of 2006.

Revenues for the first quarter were SR10.9bn, an increase of 14 per cent on the corresponding period in 2007, with production and sales rising by 6 per cent and 4 per cent respectively.

Sabic shares fell by 2.9 per cent to close at SR153 in Riyadh, valuing the company at SR459bn.

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