Corrected: SABIC shares fall on poor Q1 results

Correction: In the ICIS news story headlined "SABIC shares fall on disappointing Q1 results", dated 21 April 2008, please read in the first paragraph ...shares closed at Saudi riyal (SR) 152.75 (-0.16%)... instead of ...shares closed at Saudi riyal (SR) 153 (-2.85%).... A corrected story follows.

DUBAI (ICIS news)--Saudi Basic Industries Corp's (SABIC) shares closed at Saudi riyal (SR) 152.75 (-0.16%) on Monday, marking the second day in a row of falling share values after the company posted less-than-expected first quarter earnings.

SABIC’s first-quarter results were Saudi Riyal (SR) 6.9bn ($1.8bn), up 10% from the same quarter last year.

Most local analyst and industry observer were expecting higher results specially after Qatar Industries, which has similar operations, posted Qatari Riyal 1.9bn, a 113% increase from the same period last year.

Investors voiced concerns that SABIC posted disappointing results despite soaring petrochemicals prices in the international market.

SABIC’s acquisition of GE Plastics has been cited as one of the reasons for the results, investors indicated they wanted to know how much longer would the weaker-than-expected results last.

SABIC executive director Mohamed Al Mady said on local television that analysts’ expectations of higher earnings were not realistic. He said analysts did not take into consideration the changes of feedstock costs and plant maintenance shutdowns.

Company sales in the US market were affected by feedstock costs, Al Mady said. 

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