Saudi chemical firm Sabic says inflation hurting industry’s recovery, net income down

Saudi chemical firm Sabic says inflation hurting industry’s recovery, net income down

The world’s biggest chemicals maker reported worse-than-expected earnings and said the global market remained fragile.

Saudi Basic Industries Corp. made net income of 660 million riyals ($176 million) in the first quarter, down 90 percent from the same period a year earlier.

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Analysts expected a profit of 790 million riyals, according to data compiled by Bloomberg.

“High inflation and interest rates continue to add to the uncertainty of global demand growth,” Sabic said in a statement. “We expect margins to remain under pressure in the second quarter.”

Sabic is majority owned by Saudi Aramco and has a market valuation of $72 billion, more than that of any other listed chemicals firm.

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