OREANDA-NEWS. April 27, 2012. Saudi Basic Industries, the world’s largest petrochemical company by market value, said profit declined for a second quarter in the three months to the end of March because of a slowdown in demand from China and high oil prices.

The company, which is majority owned by the Saudi government, posted a 5 per cent decrease in net profit in the first quarter from the same period a year ago, according to a statement posted on Tuesday on the stock exchange. Profit totalled SR7.27bn (USD1.94bn) compared with SR7.69bn, the company said.

Sabic’s products are used for a wide range of goods from retail to car manufacturing, meaning that the company’s performance is tightly correlated to global economic activity. In recent years, the chemical maker has turned its focus to China and the east to serve demand for its products.

"China was growing at a higher rate before, then there was a slowdown in its economy, also the European slowdown  and high oil prices had an impact on raw materials cost,"  chief executive Mohamed al-Mady told reporters in Riyadh.