Oil slide slashes first-quarter profit, not investment plans at Saudi's SABIC

Saudi Basic Industries Corp faces heavy pressure on its profits due to cheap oil but will keep investing globally to boost capacity in key areas, its acting chief executive said on Sunday after the company reported a 39 plunge in first-quarter profit. SABIC , one of the world's largest petrochemicals groups and Saudi Arabia's biggest listed firm, said net profit sank to 3.93 billion riyals ($1.05 billion) in the three months to March 31 from 6.44 billion riyals a year earlier. Its sales values were slashed by the plunge of oil prices, which has dragged down petrochemical product prices. Yousef Abdullah al-Benyan, who took over from longtime CEO Mohamed al-Mady in February, said the fall in oil and petrochemical product prices was "out of control", and that his company was continuing to look at its cost base with a view towards postponing non-vital spending.

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