Petrochemicals giant Saudi Basic Industries Corporation (SABIC) on Tuesday said its second-quarter 2022 net profit rose 4% to SAR7.93 billion riyals ($2.11 billion), but it warned that margins are expected to be under pressure in the second half of the year due to global factors.

The result beats analysts' mean estimate of SAR6.17 billion, according to data provider Refinitiv.

On a sequential quarter basis, the profit was 22% higher, the company said in a statement on the Saudi Stock Exchange (Tadawul).

The world’s largest chemical maker in terms of market value said the slowing of global economic growth is likely to affect the outlook. "Due to slowdown in global GDP growth, lockdowns in China, conflict in Europe and continued supply chain challenges, we expect margins to be under pressure in the second half of 2022."

Q2 revenue came in at SAR55.98 billion, 32% higher year-over-year (YoY).

The company said higher average selling prices and sales volume contributed to the higher net profit, though they were offset by an increase in feedstock costs and higher selling and distribution expenses.

SABIC’s EBITDA amounted to SAR13.28 billion in the quarter, representing an increase of 4% compared to the previous three months. EBITDA margin was flat at 24%.

In June, SABIC’s board approved a cash dividend distribution of SAR2.25 per share for the first half of 2022, approximately 29% higher than the cash dividend distribution of SAR1.75 per share for the first half of 2021.

 (Reporting by Brinda Darasha; editing by Cleofe Maceda)