1Q12 profitability declined by 5.5% YoY but was higher by 38.8% QoQ
Consensus and Global Research estimates deviated by 8.5% and 7.7%, respectively
Gross profit for 1Q12 amounted to SAR14.5bn, lower by 6.0%YoY and higher by 8.4% QoQ
Performance of the subsidiaries remained subdued
Analyst comments:
Saudi Basic Industries Corporation (SABIC) reported 1Q12 net income of SAR7.27bn compared to SAR7.69bn for the same quarter last year, representing a decrease of 5.5%, and compared to the net income for the fourth quarter of 2011 of SAR5.24bn, representing an increase of 38.8%.
The decline on YoY basis resulted because of lower product pricing which was to some extent softened by higher sales volumes. However the results were higher on a QoQ basis mainly driven by higher pricing for certain products and reduction in general and administrative costs.
The results came higher despite low income reported by SAFCO and Saudi Kayan and increase in feedstock costs for certain products during the quarter. Saudi Kayan Petrochemical 1Q12 loss widened to SAR71.1mn, while SAFCO 1Q12 net income dropped by 38.4% on a QoQ basis.
We will come with a result update once detailed financials are issued by the company.
© Press Release 2012
