Business & Finance

SABIC Q2 revenues rise; says oil price appropriate

RIYADH : Saudi Basic Industries Corp (SABIC) , the world's biggest petrochemical firm by market value, said on Sunday th

Published July 17, 2011 Updated July 17, 2011 08:29am

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By Abdul Ahad

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Chief Executive Mohamed al-Mady said sales in the second quarter reached 49 billion riyals ($13.06 billion), compared to 39 billion riyals in the prior-year period.

"Forty-nine billion Saudi riyals ... that's also a historic high," Al Mady said at a press conference.

On Saturday, SABIC posted a 61-percent rise in second quarter profit due to increases in output and prices.

SABIC beat analysts' forecasts with net profit of 8.1 billion riyals in the three months to end-June, compared with 5 billion riyals a year earlier.

Analysts surveyed by Reuters on average had expected a net profit of 7.1 billion riyals for the quarter.

Al Mady said on Sunday that current oil prices were good for the petrochemical market.

"I think a price within the range we have today is quite good for everybody."

SABIC has an advantage over rivals in terms of profitability because it pays a government-subsidised 75 cents per million BTU (British Thermal Unit) for gas feedstock, a fraction of the cost on international markets.

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