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.

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.