Saudi Basic Industries 2Q net profit jumps 81 pct, beats estimates

RIYADH: Saudi Basic Industries Corp (SABIC), the world’s fourthbiggest petrochemicals company, reported an 81 per cent leap in second- quarter ( 2Q) net profit yesterday, citing higher selling prices and a jump in sales volumes.

SABIC made a net profit of 6.7 billion riyals ( US$ 1.79 billion) in the three months to June 30, up from 3.71 billion riyals in the yearearlier period, it said in a bourse statement.

Analysts had on average expected SABIC to make a net profit of 5.8 billion riyals.

Quarterly sales climbed 26 per cent from a year earlier to 43.28 billion riyals, and were up three per cent from the previous quarter.

SABIC has been a focus of investor attention after Reuters reported earlier this month that Saudi national oil giant Aramco aimed to buy a stake in SABIC, possibly taking the entire 70 per cent holding owned by Saudi Arabia’s sovereign wealth fund.

Aramco subsequently the report.

SABIC’s results are closely tied to oil prices and global economic growth because its products - plastics, fertilisers and metals - are used extensively in construction, agriculture, industry and the manufacturing of consumer goods. — Reuters confirmed