Saudi Arabia's biggest petrochemical company says performance driven by rise in production, sales
Saudi Basic Industries Corp
(SABIC) reported a 42 percent rise in its
first-quarter net profit as it increased production and sales,
it said on Monday, beating analysts forecasts.
Saudi Arabia's biggest petrochemical company said in a
statement on the kingdom's bourse website net profit reached SR7.7
billion Saudi ($2.05 billion) in the three months through
March, compared with 5.4 billion in the same period a year
Analysts surveyed by Reuters expected the firm to post, on
average, 6.2 billion riyals for the first-quarter.
SABIC said its operational profit increased by 29 percent in
the quarter compared with a year before to 12.2 billion riyals.
"We expect the stock to witness a strong rally in the short
term on the back of these outstanding results," said Mahdi
Mattar, head of research and chief economist at CAPM Investment,
in an emailed statement.
"While current petchem prices are holding up at their
elevated levels as a result of the geopolitical risks and the
corresponding high oil prices, this trend is expected to ease in
the midterm," he added.
The earnings were released after trading on the Saudi bourse
closed, with SABIC shares down 0.7 percent, underperforming a
0.02 percent rise in the Saudi market as a whole.For all the latest industry news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.