Saudi SABIC second quarter earnings up 61%

Petchem giant posts $2.16bn second quarter net profit on increases in output, prices
Saudi SABIC second quarter earnings up 61%
oil refinery, oil plant, gas plant, oil and gas refinery, energy, petrochemicals plant
By Reuters
Sun 17 Jul 2011 09:57 AM

Saudi
Basic Industries Corp (SABIC), the world's biggest petrochemical firm by market
value, posted a 61 percent rise in second-quarter net profit due to increases in
output and prices.

SABIC
beat analysts' forecasts with net profit of SR8.1bn ($2.16bn)
in the three months to end-June, compared with SR5bn a year earlier.

Analysts
surveyed by Reuters on average had expected a net profit of SR7.1bn for the quarter.

In
a statement on the bourse website on Saturday, the company attributed the rise
in profit to increases in production and sales and higher prices for most of
its products.

"The
main reason for the second-quarter profit increase compared to the same period
a year earlier is increased sales and improved prices of some products,"
the statement said.

The
company proposed a dividend of SR2 per share for the first half of 2011.

Operational
profit for the second-quarter rose by 45 percent to 13.3 billion riyals.

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