Saudi chemical giant Sabic is missing out on profits as the recovery stagnates

Saudi Arabia’s largest chemicals company missed analysts’ profit expectations last quarter as the sector continues to struggle with challenging conditions including overcapacity and weak demand.

Saudi Basic Industries Corp.also known as Sabic, posted a profit of 1 billion riyals ($266 million) in the third quarter, according to a statement on Monday. That is more than a year ago, when the company made a loss from the sale of its steel division, but lower than in the second quarter. Higher raw material costs and lower average selling prices were a drag, the report said.