SABIC (2010) saw its quarterly net profit exceed analysts’ expectations, jumping about 85% YoY to SAR 2.2 billion (USD 581 million).
This is a significant rise from previous forecasts of SAR 859.5 million.
Details
SABIC’s significant profits came on the back of a growth in its sales volume and improved profit margins during the period from April to June.
So What
SABIC, one of the world’s largest petrochemical companies, reported that its revenues in the second quarter reached SAR 35.7 billion (USD 9.5 billion), an annual increase of about 5%.
The company attributed the hike to an improvement in average product sale prices and a slight increase in quantities sold.
It also noted a benefit from reevaluating its Zakat expense provisions in 2024, which led to non-cash gains of SAR 545 million.
This compares to a Zakat expense of SAR 440 million in the second quarter of 2023.
Some context
SABIC said that the global petrochemical market saw positive indicators during the current quarter in most sectors, supported by the continuous improvement in the Purchasing Managers’ Index and a slight decrease in inflation.
On the other hand, the company’s profits during the first six months of this year increased by more than 32% YoY, recording about SAR 2.4 billion.
Now What
The company’s CEO, Abdulrahman Al-Fageeh, announced that the Board of Directors approved dividend distributions for the first half worth SAR 5.1 billion.
This is an increase of 6% compared to the second half of last year.
During a press conference, he added that the value resulting from the company’s cooperation with Aramco, which owns 70% of SABIC, has amounted to USD 2 billion thus far.
Finally, he explained that SABIC will maintain a disciplined approach toward managing capital expenditures.
Spending will be in the lower range of USD 4–5 billion in 2024.
