Saudi Basic Industries Corp. (SABIC), the world's largest chemical producer by market value, posted a 54 percent rise in its third-quarter net profit, beating analyst expectations on the back of high product prices and continued strong global demand. SABIC had indicated earlier this year that it expected demand for its products, which include chemicals, industrial polymers, fertilizers and metals, would be robust for the rest of the year. The company made a record net profit of SR8.2 billion ($2.2 billion) in the three months ended Sept. 30, compared with SR5.3 billion in the same period a year earlier. "The best quarter in SABIC history is this quarter," Chief Executive Mohammed Al-Mady told a news conference Monday. Al-Mady also said the firm's sales in the quarter were SR49 billion, compared with SR38 billion in the same period of 2010. In January, SABIC said it expected higher sales and profitability this year and throughout 2012 as petrochemical prices returned to pre-crisis levels and further output capacity was added. Shares in SABIC have dropped more than 12 percent this year and closed trade Monday at SR91.75, underperforming the Saudi market index , which has dropped 8 percent since the beginning of the year. Al-Mady said demand for the company's products remained good despite instability in the global economy, and specifically that he had not seen any change in demand from China so far. Asked whether SABIC might change its investment plans because of economic uncertainty, he said "as a matter of fact, when the economic situation gets bad, it is time to invest." He said the company had no plans to issue bonds this year. Saudi Arabia's petrochemicals helped the Tadawul All Share index make small gains and insurance stocks supported but banks slipped for a second day. The benchmark was up 0.07 percent to 6,140 points, trading in a sideways trend. SABIC rose 0.3 percent and Rabigh Refining and Petrochemical Co. gained 0.4 percent.
