Petrochemical giant SABIC posts a near 4% rise in Q2 net profit

Driven by a surge in key product prices along with the increased sales volumes, the Middle East’s largest petrochemical company, SABIC, reported a 3.8% increase in its second-quarter net profit.

SABIC’S net profit after zakat (donations) and taxes for the quarter ended in June 2022, rose to $2.1 billion (Saudi Riyal 7.93 billion), beating analysts’ average estimate of Saudi Riyal 5.9 billion, the petrochemical major said in a statement.

Most analysts had forecasted an over 20% decline in the net profit along with a 25.7% surge in sales to $14.93 billion. The Riyadh-based company attributed the results to higher average selling prices and sales volume, despite an increase in feedstock prices and selling expenses. SABIC said that the average sales prices in the second quarter of 2022 increased by 3% compared with the first quarter of 2022.

“Sales volumes also increased by 3% in the second quarter of 2022 compared with the first quarter of 2022. For the first six months of 2022, average sales prices increased by 26% and sales volumes increased by 10% compared with the first six months of 2021,” the statement noted.

While declaring the results, Yousef Abdullah Al-benyan, SABIC’S vice chairman and chief executive officer, said: “The second quarter strong financial results demonstrate SABIC’S robust operational performance across the different segments.”

He explained, “Our commitment to sustainability and innovation was evident through winning two silver and three bronze awards in the prestigious Edison Awards. These awards also reflect our commitment to helping achieve our long-term objective of carbon neutrality by 2050”.