Sabic third quarter net profit surges five-fold on higher selling prices – The National

Sabic third quarter net profit surges five-fold on higher selling prices – The National

Saudi Basic Industries Corporation (Sabic), the Middle East's biggest petrochemicals firm, reported a five-fold increase in third-quarter net profit on the back of higher average selling prices.

Net profit for the three months to the end of September surged to 5.59 billion Saudi riyals ($1.5bn) the company said in a statement on Thursday to the Tadawul stock exchange, where its shares trade. Revenue rose 29.3 per cent to 43.7bn riyals during the period.

“Sabic’s healthy financial performance during third quarter of 2021 marked a continuation of our recovery from the impact of Covid-19, albeit at a lower level than our exceptionally strong performance during the third quarter,” Yousef Al-Benyan, vice chairman and chief executive of Sabic, said.

The company's net profit was also boosted by an increase in its share of results and joint ventures, it said in the filing.

Manufacturers of chemicals like Sabic have benefitted from an overall rise in demand for chemicals and feedstocks as economic activity ramps up amid a relaxation of movement curbs and a fall in infections globally.

Sabic's income from operations rose 266 per cent during the third quarter to reach 7.70bn riyals, the company said.

But buoyant oil prices, which are at multi-year highs, are also increasing costs