SABIC’s H1 2024 profit jumps 32% to SAR 2.4B; Q2 at SAR 2.2B

Saudi Basic Industries Corp. (SABIC) reported a net profit rise of 32% to SAR 2.4 billion in the first half of 2024, from SAR 1.8 billion a year earlier.

The profit growth was driven by an 18% rise year-on-year (YoY) in gross profit, thanks to improved profit margins and despite a partial increase in operating expenses (OpEx) due to some nonrecurring charges. SABIC’s shares in the results of associates increased by SAR 245 million.

The company also recorded a reversal of Zakat provision, which led to positive non-cash gains of SAR 214 million in H1 2024 compared to Zakat expense of SAR 919 million a year earlier.

Gains from fair valuation of derivative equity instruments decreased, reducing the non-cash finance income by SAR 556 million. On the other hand, the first-half revenue declined on lower sales volumes.

In Q2 2024, the giant petrochemical producer’s bottom line soared 85% to SAR 2.2 billion from SAR 1.1 billion in Q2 2023, thanks to higher revenue amid better. Average selling prices and a slight increase in sales volumes.

Gross profits jumped 32% YoY on improved profit margins of some key products.

Moreover, net earnings skyrocketed to SAR 2.2 billion from SAR 246.2 million in Q1 2024.

Shareholders’ equity, after minority interest, stood at SAR 163.91 billion as of June 30, 2024, compared to SAR 176.78 billion a year earlier.

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