Sadara Chemical H1 2022 profit down 88% to SAR 275 mln; Q2 down to SAR 229.2 mln

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Sadara Chemical Co. posted a decline of 88% in net profit after Zakat and tax to SAR 275 million for the first half of 2022, from SAR 2.224 billion in the year-earlier period, as shown below:

The lower profit was attributed to the recognition of a modification gain of SAR 1.05 billion from debt reprofiling during the previous year, in addition to lower average selling prices despite the higher sales volume.

The decrease is also due to higher production costs, resulting from higher feedstock prices year-on-year (YoY).

The company’s second-quarter net profit after Zakat and tax declined 62% to SAR 229.2 million, from SAR 606.3 million in Q2 2021.

Compared to the previous quarter, net profit after Zakat and tax saw a four-fold increase from SAR 45.9 million.

Shareholders’ equity, after minority interest, rose to SAR 7.567 billion as of June 30, 2022, from SAR 5.200 billion a year earlier.

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