Advanced Petrochemicals Co. dropped to the lowest level in almost two months after the Saudi manufacturer of polypropylene products said third-quarter estimated profit retreated 26 percent on lower prices.
The shares fell as much as 1.2 percent to 25.2 riyals before closing at 25.4 riyals, the lowest level since Aug. 11. The kingdom’s benchmark Tadawul All Share Index slipped 0.4 percent, the most since Sept. 29, to 6,863.30.
“As polypropylene prices, on average, continue to remain soft in 2012, we are revising downwards our 2012 and 2013 net income estimates to 321 million riyals ($86 million) and 494 million riyals respectively,” Riyad Capital analysts including Muhammad Faisal Potrik said in an e-mailed note today. Potrik cut the share-price estimate 3.1 percent to 31 riyals.
Advanced Petrochemicals’ net income for the three months ended Sept. 30 declined to 100 million riyals from 136 million riyals in the year-earlier period, the company said yesterday. Full-year profit may drop 41 percent to 304 million riyals this year, according to the mean estimate of eight analysts on Bloomberg.
Seven analysts, including Potrik, recommend investors buy the shares, while five have a hold rating on the stock, according to data compiled by Bloomberg. The company’s 12-month dividend yield is 7.3 percent, compared with 5.5 percent for Saudi Basic Industries Corp., the world’s largest petrochemicals maker.