NCB Capital (NCBC) has stated that SABIC Q3 net income came in at SAR 6.18 billion, declining 4.5% y/y and 6.1% below the NCBC’s estimates of SAR 6.58 billion.
The results were also below the consensus of SAR 6.8 billion and the revised income of SAR 6.7 billion.
Lower sales and other income were the main reasons behind the weak results.
The research firm believes the declining oil prices and the negative global economic data are SABIC’s key risks going forward.
NCBC is currently ‘Overweight’ on the stock, with a price target of SAR 153.8/share.
The stock is currently trading at 2015E P/E of 12.4, lower than sectors P/E 13x.