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Yousef Al-Benyan, Vice Chairman and CEO, SABIC
The average selling prices of Saudi Basic Industries Corp. (SABIC) rose 3% quarter-on-quarter (QoQ) and 22% year-on-year (YoY) in Q2 2022, said Vice Chairman and CEO Yousef Al-Benyan.
Profit margins will likely be squeezed due to the challenges in the Chinese market, repercussions of the Russia-Ukraine war in Europe and high energy prices, Al-Benyan told Argaam on the sidelines of the company’s earnings conference today.
Persistent supply chain issues will also weigh on demand due to cost pressure on manufacturers, the CEO noted.
He stated that the impact of the polycarbonate complex in China, which is equally owned by Sinopec, will reflect in H2 2022 financials.
SABIC reported a net profit increase of 4% YoY in Q2 2022 to SAR 7.9 billion, which is the highest since Q3 2011 when it reached SAR 8.2 billion.
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