Saudi Arabian firm SABIC's Q1 FY21 revenue rises 24% to SAR 37.5 bn

21 Jun '21

2 min read

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Saudi Basic Industries Corp (SABIC), a Saudi Arabian chemical manufacturing company, posted 24 per cent revenue growth to SAR 37.5 billion (Saudi Riyals) in its first quarter (Q1) FY21 ended on March 31, 2021, compared to SAR 30.1 billion in the corresponding period of previous fiscal. The company’s net income rose to SAR 4.8 billion (Q1 FY20: loss SAR 1.0 billion).

“SABIC’s financial performance has seen a positive start to 2021. The first quarter saw rising oil prices and a tight supply and demand balance. These elements, combined with growing demand as the global economy continues to recover, resulted in higher prices and margins for most of our products,” Yousef Abdullah Al-Benyan, vice chairman and chief executive officer of SABIC, said in a press release.

The company's EBITDA for Q1 FY21 jumped 139 per cent to SAR 10.4 billion (SAR 4.3 billion). Income from operations was SAR 6.9 billion (loss: SAR 0.06 billion).

Revenue of petrochemical and specialities’ segment surged 26 per cent to SAR 32.7 billion (SAR 25.9 billion). In the performance polymers & industrial solutions business unit, polypropylene prices grew during the reported quarter by supported by a tight supply and unplanned outages coupled with weather impacts in the US and healthy demand. Moreover, revenue of agri-nutrients segment was SAR 1.8 billion (SAR 1.4 billion), and hadeed segment was SAR 2.9 billion (SAR 2.7 billion).

“Our priorities in 2021 are to remain focused on the key fundamentals. This includes maintaining our financial strength, and excelling in our commitments to operational performance, sustainability, customer focus and innovation. We are optimistic about our future growth, assuming the continued successful rollout of vaccines global,” Al-Benyan concluded.

Fibre2Fashion News Desk (JL)