Saudi Basic Industries Corporation (SABIC), one of the world’s largest petrochemical firms, reported an 85 per cent rise in net profit for the second quarter, supported by better margins and accounting changes. For the three months ending June 30, SABIC posted a net profit of $581.04M (SAR 2.18B), surpassing analyst expectations of SAR 904.25M, according to LSEG data.
SABIC, which is 70 per cent owned by Aramco, noted its ongoing focus on “strategic portfolio optimisation” and restructuring underperforming assets.
The sale of its steel business, Hadeed, to the Public Investment Fund was completed on June 1. SABIC emphasised that optimising its portfolio is key to enhancing returns and reallocating capital to more profitable ventures.
Quarterly revenue rose by 5 per cent year-on-year to SAR35.72 B, driven by improved average selling prices and a slight increase in sales volume. SABIC’s capital expenditure projection for the year remains at $4B to $5B.
Since Aramco acquired a majority stake in SABIC in 2020 for $69.1 B, $2.08 B in “captured value” has been realised, including $162M in synergy for the second quarter. Aramco expects to achieve $3B to $4B in annual synergy from the acquisition by next year.
