Dubai — 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.
It attributed the increase in profit to higher average selling prices despite an increase in feedstock costs and higher selling and distribution expenses.
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.
Follow us on twitter
