SABIC Q2 profit plunges 68% on lower petrochemical prices
Saudi Aramco is in the process of purchasing a 70% stake in the company
SABIC has posted a 68.4% year-on-year plunge in its Q2 2019 profit, which it attributed to a drop in petrochemical prices. The company posed $565mn in net profit for the second quarter.
"The slowdown in global GDP growth coincides with a decline in petrochemical prices due to a significant increase in new supply capacity resulting in lower product prices and margins in key product lines," wrote Yousef al-Benyan, vice chairman and CEO of SABIC in a statement to the Saudi exchange.
He continued to note that "the new capacities in key products lines that pressured SABIC's product prices and margins in the first half of 2019 are expected to continue to impact the company's earnings in the second half of 2019."