SABIC 2021 net profit rises to SAR 23 bln for 2021; Q4 profit hits SAR 4.9 bln

Saudi Basic Industries Corp. (SABIC) reported a net profit after Zakat and tax of SAR 23 billion for 2021, a rise of 32.8% from SAR 66.8 million in the year-ago period. 

The robust profit was driven by higher average selling prices and an increase in the company’s profit share from joint ventures and associates. 

SABIC’s net profit after Zakat and tax surged over twofold to SAR 4.9 billion in Q4 2021, from SAR 2.24 billion a year earlier, thanks to a rise in average selling prices and better sales volumes.

The strong rise came although the giant petrochemical producer recorded impairment and restructuring provisions in certain capital assets of SAR 0.92 billion, of which SABIC’s share amounted to SAR 0.76 billion. Finance charges also increased mainly due to the re-measurement of derivatives equity instruments for forward contracts related to certain joint venture agreements by SAR 0.59 billion.

On a quarterly basis, the fourth-quarter net profit dropped 11.9% from SAR 5.59 billion in the previous quarter, as the company recorded impairment and restructuring provisions in certain capital assets of SAR 0.92 billion, of which SABIC’s share amounted to SAR 0.76 billion.

Total shareholders’ equity, excluding minority interests, grew by 7.2% to SAR 179.8 billion as of Dec. 31, 2021, from SAR 167.6 billion a year earlier.

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