DUBAI, Aug 9 (Reuters) - Saudi Basic Industries Corp
(SABIC) said on Tuesday that it expects margins to be
under pressure in the second half of 2022, due to a slowdown in
global growth, lockdowns in China, conflict in Europe and
continued supply chain challenges.
The guidance from the world's fourth-biggest petrochemicals
firm by sales and asset value came as it reported an almost 4%
rise in second-quarter net profit.
SABIC achieved a net profit of 7.93 billion riyals ($2.11
billion) for the three months to June 30, up from 7.64 billion a
year earlier, the company said in a bourse statement.
That beat the 6.16 billion riyals mean forecast of seven
analysts, Refinitv data showed.
It attributed the increase in profit to higher average
selling prices despite an increase in feedstock costs and higher
selling and distribution expenses.
Sales rose 32% to 55.98 billion riyals, exceeding an
analysts' forecast of 53.78 billion.
Average selling prices rose 22% and were up 3% from the
first quarter, SABIC said in its earnings presentation. Sales
volumes increased 10% year on year and 3% quarter on quarter.
The company said profits were also buoyed by an increase in
its share of results of associates and joint ventures.
SABIC said it expects earnings before interest, tax,
depreciation and amortisation (EBITDA) to be flat this year with
higher sales volumes offsetting high feedstock prices.
Oil giant Saudi Aramco owns 70% of SABIC.
($1 = 3.7580 riyals)
(Reporting by Hadeel Al Sayegh, additional reporting by
Alexander Cornwell; editing by Shailesh Kuber and Jason Neely)