Saudi Arabia’s largest chemical company missed analysts’ profit estimates for the past quarter as the industry continues to face difficult conditions, including overcapacity and weak demand.

Saudi Basic Industries Corp.also known as Sabic, posted a profit of 1 billion riyals ($266 million) in the third quarter, according to a statement on monday. That’s up from a year ago, when the company suffered a loss due to the sale of its steel unit, but down from the second quarter. Higher raw material costs and lower average selling prices were a drag, it said.