Petrochemicals giant stresses need for China recovery

The world’s largest petrochemicals producer has warned that its profits will remain under pressure until China’s economy rebounds.

Saudi Basic Industries’ net income dropped to 290m riyals (£63.75m) in the fourth quarter of 2022, a year-onyear decrease of 94pc and the worst result since mid-2020 during the height of the pandemic.

The company expects profit margins to remain tight during the first half of 2023. Demand for plastics and building materials remain weak despite China’s reopening from zero-covid restrictions, the company said.

“So far we have not seen the high demand that was expected,” acting chief executive Abdulrahman Al-fageeh told Bloomberg.