SABIC has posted a big jump in second-quarter profits to $2.1 billion, beating analysts’ average estimate of $1.57 billion.
Analysts had predicted a 23-percent profit decline along with a 25.7 percent surge in sales to $14.24 billion, Argaam data showed.
The company attributed the results to higher average selling prices and sales volume, despite an increase in feedstock prices and selling expenses.
SABIC Agri-Nutrients, which posted a 262 percent rise in quarterly profit, also beefed up the company’s performance.
“The second quarter’s strong financial results demonstrate SABIC’s robust operational performance across the different segments,” said Yousef Al-Benyan, CEO of SABIC.
“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,” he added.
Among the major developments this quarter, SABIC started pre-commissioning activities at its China plant in partnership with China Petroleum & Chemical Corp., Sinopec. The plant has an annual production capacity of 260,000 tons.
The company’s board recommended a SR2.25 per share cash dividend for the first half of the year, representing a total payout of SR6.75 billion and a 29 percent increase from the same period in 2021.