Sabic posts rare loss in Q1 as crisis hits demand

Saudi Basic Industries Corporation (Sabic), the Arab world's largest company, swung to a net loss of SR974 million ($259.3 million; Dh952 million) in the first quarter after the global downturn hit demand for petrochemicals.

The state-controlled firm made a net profit of SR6.92 billion in the first quarter of 2008. Laurent Gally of Dubai-based Shuaa Capital said the loss was the firm's first since the fourth quarter of 2001.

Sabic said in a statement on the Saudi bourse website that falling petrochemical and metals prices and a goodwill depreciation of SR1.18 billion had hit profits.

Analysts surveyed by Reuters had expected on average net profit of SR1.2 million.

 

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