Saudi Basic Industries Corp (SABIC) reported a second quarter net profit of 7.64 billion riyals ($2 billion), swinging from a net loss of 2.22 billion riyals in the year-earlier period, mainly on the back of higher product prices.
The results beat most analysts estimates. NCB Capital had forecast a net profit of 6.41 billion riyals for Q2, while Al Rajhi Capital estimated 6.63 billion riyals.
The petrochemicals group, which is majority owned by state oil giant Saudi Aramco, said in a filing to the Saudi Tadawul stock exchange on Thursday that the massive jump in profitability was mainly due to higher average selling prices of most products and higher sales volumes.
In addition, its share in the results of joint ventures and associates increased, the petrochemicals giant said.
Sales and revenue jumped over 72 percent to 42.4 billion riyals, it said. SABIC’s key products include ethylene, ethylene glycol, methanol, polyethylene and engineering plastics and its derivatives.
The chemicals company noted also that there was in the loss-making year-ago quarter there were impairment provisions in certain capital and financial assets amounting to 2.28 billion riyals.
In its 2021 guidance issued last quarter, the company said it expected a 2 to 5 percent growth in total sales volume 2021, on account of improving demand amid a recovery in the global economy.
(Writing by Brinda Darasha; editing by Daniel Luiz)
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