Saudi Arabia's Yanbu National Petrochemicals (Yansab) said it made a non-operating loss in the first quarter as investment income fell.

Yansab, which plans to start operations in mid-2008, made loss of 4.9 million riyals ($1.31 million) in the three months to March 31 compared with non-operating profit of 81.3 million riyals in the year-earlier period, the company said in a statement.

Yansab, 55-per cent owned by Saudi Basic Industries (Sabic), raised $525 million in an initial public offering of shares in 2005.

The firm's first-quarter loss was due to a decline in  revenue from investments, the company said, adding these revenues fell to 4 million riyals at the end of March 2007, compared with 91 million riyals at the end of the first quarter of 2006.

Sabic's chief financial officer Mutlaq Al Morished has said most of the firm's non-operating profit in 2006 came from investment in Islamic instruments.

Yansab made a loss per share of 0.01 riyals compared with 0.15 earnings per share in the year-earlier period, the company said.

The firm has said it plans to invest $5 billion in projects to produce 4.0 million tonnes of petrochemicals a year.  Reuters