Saudi Basic Industries Corp (Sabic), the world's biggest chemicals firm by market value, is expected to make a second-quarter net profit of $2.36 billion, up 36.4 percent from a year ago, HSBC said.

Sabic, whose quarterly earnings are due to come out this month, made a net profit of 6.47 billion riyals ($1.73 billion) in the three months to June 30, 2007.

An economic slowdown in the United States should not have an impact on demand for petrochemicals but margins will be squeezed, especially for naphtha-based products, due to the surge in oil prices, HSBC said in a research note received on Monday. -Reuters