Saudi SABIC swings to Q2 profit as product prices, sales volume spike

SINGAPORE (ICIS)–Saudi Arabia’s petrochemical major SABIC swung into a net profit in the second quarter of 2021, thanks to higher product prices and sales volumes.

in billion Saudi riyal (SR)	Q2 2021	Q2 2020	% change	H1 2021	H1 2020	% change
Sales	42.42	24.62	72.30	79.95	54.81	45.87
Operating income	10.06	(1.26)	–	16.98	(1.32)	–
Net profit	7.64	(2.22)	–	12.51	(3.27)	–

In the June quarter, increased share of results of joint ventures and associates also boosted the company’s earnings.

“The reporting period coincided with the one-year anniversary of Saudi Aramco’s acquisition of a 70% stake in SABIC, during which several workstreams have been introduced to capture synergies to drive more efficiency and add customer value,” SABIC said in a statement.

Saudi Aramco is the world’s biggest crude oil exporter.

“These workstreams, which have realized $230 million of value by the end of Q2 2021, include a recently announced realignment of sales and marketing activities,” it added.

SABIC vice chairman and CEO Yousef Al-Benyan said: “SABIC’s financial performance in the second quarter was strong – continuing the margin improvement seen during the first quarter of 2021.”

“This was driven by higher sales volumes and prices, supported by a rise in oil prices and a healthy supply and demand balance for most of our key products as the global economy continued its path to recovery,” he added.

In the first half of 2021, SABIC also swung to a net profit, noting that its financial results for the period last year were affected by Saudi riyal (SR) 2.28bn ($608m) impairment provisions in certain capital and financial assets.

($1 = SR3.75)

Thumbnail picture: SABIC’s Saudi Arabia headquarters. Source: SABIC)