Saudi Chemical H1 2024 profit surges to SAR 164.2M; Q2 at SAR 72.7M

Saudi Chemical Holding Co. (SCHC) reported a net profit surge to SAR 164.2 million in the first half of 2024, from SAR 58.8 million in the year-earlier period.

The six-month profit growth was driven by a 45.1% year-on-year (YoY) increase in revenue on higher sales volumes and operating profits. SCHC reported an increase in sales volumes, and revaluation gains on derivative financial instruments related to interest rate exposure, despite the increase in finance cost.

This was, however, offset by higher financing costs.

In Q2 2024, the company’s net earnings more than doubled to SAR 72.7 million, from SAR 26.5 million in Q2 2023 as revenue grew by 33.8% YoY on higher sales volumes, and operating profits. On the other hand, the company reported increased financing costs, as well as Zakat and tax provisions.

Meanwhile, net earnings dropped 20.5% from SAR 91.4 million in Q1 2024 hurt by a 1.8% sequential decline in revenue amid lower sales volumes, and operating profits along with increased finance costs, as well as general and administrative expenses.

Shareholders’ equity, after minority interest, reached SAR 1.96 billion by June 30, 2024, compared to SAR 1.71 billion in the prior-year period.

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