Sabic reported its earnings for the second quarter of 2021.
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The company’s revenue for the second quarter reached SAR 42.42 billion ($ 11.31 billion), representing an increase of 13% compared to the previous quarter and a 72% increase year-over-year.
Income from operations for the quarter totaled SAR 10.06 billion ($ 2.68 billion) a 45% increase quarter-over-quarter. Net income during the second quarter amounted to SAR 7.64 billion ($ 2.04 billion), an increase of 57% compared to the first quarter of 2021.
Yousef Al-Benyan, SABIC Vice Chairman and CEO, said: “SABIC’s financial performance in the second quarter was strong – continuing the margin improvement seen during the first quarter of 2021. This was driven by higher sales volumes and prices, supported by a rise in oil prices and a healthy supply and demand balance for most of our key products as the global economy continued its path to recovery.â€
He said SABIC’s ability to capitalize on improving external conditions was boosted by the company’s wide-ranging transformation program and robust capital discipline. In 2015, the company implemented the program to evolve its operating model and increase competitiveness, sustainability and innovation.
Mr. Al-Benyan also highlighted SABIC’s continued focus on shareholder returns. SABIC’s board recommended a cash dividend distribution of SAR 1.75 per share for the first half of 2021, approximately 17% higher than the cash dividend distribution of SAR 1.50 per share for the second half of 2020.
The reporting period coincided with the one-year anniversary of Saudi Aramco’s acquisition of a 70% stake in SABIC during which several workstreams have been introduced to capture synergies to drive more efficiency and add customer value.
These workstreams, which have realized $230 million of value by the end of Q2 2021, include a recently announced realignment of sales and marketing activities. Specifically, this realignment involves the transfer of marketing and sales responsibilities for a number of petrochemicals and polymers products to SABIC, with Aramco Trading Company focusing on fuel products. The changes reflect that SABIC is now the chemicals arm of Saudi Aramco, in line with both companies’ long-term strategies.
In the second quarter of 2021 SABIC also demonstrated its continued commitment to sustainability through a number of high-profile initiatives including the launch of a new recycled material made from ocean-bound plastics and high-profile collaborations that introduced SABIC’s certified circular polymers across various sectors including personal care and construction. ■