SABIC sees decline in net income for Q2

Saudi Arabia-based Saudi Basic Industries Corporation (SABIC) has announced its consolidated financial results for the second quarter of the current year.
 
In the second quarter, the company's net income decreased 35 percent to SAR 5.30 billion ($1.41 billion) compared to the same quarter of 2011. The gross operating profit of the company amounted to SAR 12.72 billion ($3.39 billion), down 23 percent year on year.
 
In the first six months of the current year, SABIC's net income declined by 20 percent to SAR 12.57 billion ($3.35 billion), compared to the corresponding period of the previous year. In the same period, SABIC's gross operating profit registered a 15 percent decrease year on year to SAR 27.25 billion ($7.26 billion).
 
According to SABIC's statement, the decrease in net income in both the second quarter and the first half ended June 30, 2012 is mainly attributable to lower product pricing and higher raw materials costs for certain products, despite higher production and sales volumes. The second quarter results were mostly affected by the continuous slowdown in global economic growth, especially in Europe, China and North America and scheduled plant maintenance.