Saudi Arabia's SABIC sees second quarter profit rise by 85% to $580M
The company's results are encouraging news for the petrochemicals sector, which has been weathering a downturn since the COVID-19 pandemic.
Saudi Basic Industries Corp. (SABIC), the kingdom’s largest petrochemicals firm, surpassed analysts’ expectations Thursday and posted a nearly 85% year-on-year increase in second-quarter net profit, signaling the potential recovery of a sector that has been weathering a downturn since the COVID-19 pandemic.
The company, one of the world’s largest petrochemical companies, posted a profit of 2.18 billion riyals ($581.04 million) for the three months to June 30, a jump of 84% compared with the same period the previous year, beating analyst expectations of 904.25 million riyals, LSEG data showed.
SABIC, which is 70% owned by state-owned oil company Aramco, said the profit was high due to improved margins and non-cash benefits arising from new regulations on zakat, the Islamic tax.
Revenue for the second quarter of 2024 rose 5% to 35.72 billion riyals ($9.52 billion) from the previous year, which the company said was due to better average selling prices and a slight increase in sales volume.
Subscribe for unlimited access
All news, events, memos, reports, and analysis, and access all 10 of our newsletters. Learn more
Continue reading this article for free
Access 1 free article per month when you sign up. Learn more.
By signing up, you agree to Al-Monitor’s Terms and Conditions and Privacy Policy. Already have an account? Log in
