Saudi Basic Industries Corp (SABIC) reported an 84.7% increase in second-quarter profits, signaling a robust recovery in the petrochemical sector. The company, majority-owned by Aramco, posted a profit of SAR 2.18 billion ($581 million), surpassing analysts’ expectations. The surge in profits was attributed to improved product margins and strategic restructuring efforts.
The global petrochemical industry has begun to rebound after a challenging 2023 marked by slow demand growth and overproduction. SABIC’s gross profit rose by 32% to SAR 1.76 billion ($469 million), despite higher operating expenses. The company also benefited from regulatory updates that boosted non-cash gains.