Saudi Basic Industries Corp (Sabic), one of the world's largest petrochemicals groups, reported a 29 per cent plunge in fourth-quarter net income on Sunday, widely missing analysts' forecasts because of the tumble of global oil prices.

The Gulf's largest listed company earned SR4.36 billion ($1.16 billion) in the quarter to December 31 compared to SR6.16 billion in the year-earlier period, Sabic said in a bourse statement.

Sabic recorded sales of SR43.4 billion ($11.6 billion) in the fourth quarter, down 10 per cent from SR48.4 billion a year previously, it said.

Sabic, which is 70 per cent state-owned, attributed the fall in profits to lower average prices for the products which it sold, although this was partly offset by lower feedstock prices. Global oil prices have more than halved since last June, dragging down petrochemical product prices.

The profit was well below the average forecast of seven analysts polled by Reuters, who had predicted a quarterly profit of SR5.50 billion. It was also well below the company's third-quarter net profit of SR6.18 billion.

Lower oil prices hurt Sabic's earnings in the third quarter through the prices of raw materials and final products, its chief executive said in October.

In addition to oil, the company's results are closely tied to global economic growth because its products - plastics, fertilisers and metals - are used extensively in construction, agriculture, industry and the manufacturing of consumer goods.

Chief executive Mohamed Al-Mady told reporters that the outlook for 2015 was unpredictable and contingent on oil prices.

He added that Sabic would stick to its strategic plan for growth up to 2025, with investments focused on China, North America and Saudi Arabia.

However, he also said low steel prices would give Sabic second thoughts about the expansion projects of Saudi Iron and Steel Company (Hadeed), its metals affiliate.

"(Steel) prices are going down...therefore any company would think twice before expansion," Al-Mady said when asked about two Hadeed projects for which feasibility studies are under way, one in Rabigh and one in Jubail. The two plants were envisaged to cost $4.26 billion. - Reuters