Saudi Arabia's National Industrialisation Company (Tasnee) on Monday said it swung to a net loss for the second quarter, which the petrochemical producer blamed on lower product sales prices and higher costs as it missed analyst forecasts.

Tasnee made a net loss of SAR107.7 million ($28.7 million) in the three months to June 30, according to a bourse filing. This compares with a profit of SAR408.3 million ($108.75 million) in the same period a year ago.

Analysts polled by Reuters had on average forecast Tasnee would make a quarterly profit of SAR96.5 million ($25.72 million).

The diversified industrial firm has interests in petrochemicals, metals and chemicals and is one of the world's largest producers of titanium dioxide through its Cristal subsidiary.

It cited lower product sales prices and higher general and administrative costs for the quarterly loss.

Petrochemicals' prices are closely correlated to those of oil, with crude prices tumbling since mid-2014. Saudi producers enjoy subsidised feedstock costs, so lower oil prices reduce their margins and lessen their advantage over foreign rivals that do not receive such benefits.

Tasnee also swung to a net loss in in the first quarter. - Reuters