Sabic profit surges 61 per cent

Saudi Basic Industries Corp, the world’s biggest petrochemicals maker, said second-quarter profit surged 61 percent because of higher prices for its products, beating analysts’ estimates.

Net income jumped to 8.1 billion riyals (Dh7.9bn) from 5.02 billion riyals a year earlier, the Riyadh-based company known as Sabic said in a statement to the Saudi bourse today. The median estimate of four analysts was for 7.72 billion riyals, according to data compiled by Bloomberg. Sabic will pay a dividend of 2 riyals for the first half.

Saudi petrochemical companies have started to recover from the global financial crisis as oil prices surged and as demand from fast-growing Asian economies including China and India increased. Saudi Arabia’s annual petrochemical exports climbed 39 percent to 4.8 billion riyals in May, according to data posted on the Saudi Ports Authority website.

Second-quarter profit rose because of increased production, sales volumes and sales prices, Sabic said in a statement today.

Sabic unit Yanbu National Petrochemicals Co. reported an increase in second-quarter earnings. The Yanbu Saudi Arabia- based company, which is also known as Yansab, said net income almost doubled to 963.7 million riyals on higher product volumes and prices.

Sabic’s shares rose 0.2 percent to 104 riyals, before the results were announced, valuing the company at 312 billion riyals. The stock has lost 0.7 percent this year.