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The second quarter showed stronger revenues across all of Saudi Basic Industries Corp.’s petrochemical streams, underpinned by higher crude oil prices, the firm reported on August 9. Saudi Basic Industries Corp. is a majority-owned petrochemicals company by Saudi Aramco.
Revenue jumps
Revenue for the three-month period ended June jumped 6.3% year on year to $14.98 billion.
Revenue for the company’s petrochemicals and specialities stream rose 4% quarter on quarter to $12.32 billion helped by higher sales prices.
Average sales gained 4% quarter on quarter in Q2.
Polyethylene prices for the US and Europe also rose quarter on quarter driven by higher feedstock costs, while remaining stable across other regions.
China saw weakening demand amid COVID-19 restrictions.
Higher feedstock costs
Polypropylene prices also rose in Q2 on higher feedstock costs.
SABIC’s agrinutrients business saw revenue rise 41% quarter on quarter to $1.52 billion due to increasing sales during the three-month period ended June.
Average sales prices more than doubled by 109% and volumes rose 16% compared with the first half of 2021.
SABIC’s Q2 net income rose 3.8% year on year to $2.11 billion.
Higher selling prices and sales volume helped boost the company’s net profit, which was offset by increased feedstock costs and selling and distribution expenses.
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Source: S&P Global
