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.
It attributed the increase in profit to higher average selling prices despite an increase in feedstock costs and higher selling and distribution expenses.
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.
Reporting by Hadeel Al Sayegh, additional reporting by Alexander Cornwell; editing by Shailesh Kuber and Jason Neely – Reuters
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