Saudi’s SABIC tumbles on smaller H2 dividend plan

Dubai

Shares in Saudi Basic Industries dropped 3.61 per cent to 91.75 Saudi Riyals (Dh90) after the Company’s board proposed paying cash dividend of 2 riyals per share for second half of 2016, below year-earlier 3 riyals, according to Thomson Reuters data.

Stock is up 22 per cent year-to-date because of rebounding oil prices, which promise to improve profit margins.

SABIC may be cutting dividend to help fund its major industrial projects under Riyadh’s economic diversification drive.