Driven by new zakat restrictions and improved margins, the petrochemical behemoth Saudi Basic Industries Corp. recorded an 84 percent year-over-year jump in net profit to SR2.18 billion ($564 million) in the second quarter of 2024.
Improved margins on key items and increased sales volume drove a 32% increase in gross profit to SR7.19 billion, according to a Tadawul statement. However, non-recurring costs negated this gain to some extent. Sales decreased in Europe, increased in the Americas, and stayed constant in China, the Middle East, and the rest of Asia.
The statement also emphasized the reversal of the zakat provision, which, as a result of recent regulatory modifications, resulted in an SR545 million benefit in the second quarter of 2024 as opposed to an SR440 million expenditure the previous year.
The company also said that the decline in non-cash financing income was SR556 million, mostly due to decreased gains on the fair valuation of derivative equity instruments. Additionally, the losses from discontinued activities were reduced by SR226 million for the current quarter.
“The global economy experienced a slight decline in the second quarter of 2024, primarily due to unexpected downturns in the recent economic indicators of major countries,” stated Abdulrahman Al-Fageeh, CEO of SABIC. On the other hand, purchasing managers index data kept showing signs of improvement in the state of the world economy.
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