RIYADH: Saudi chemical giant SABIC has reported a surge in second-quarter profits to SR7.93 billion ($2.1 billion), beating analysts’ average estimate of SR5.9 billion.

Profits jumped nearly 4 percent from SR7.6 billion in the same quarter a year earlier, coupled with a revenue jump of 32 percent to SR56 billion, according to a bourse filing.

Analysts had earlier forecasted a 23-percent profit decline along with a 25.7 percent surge in sales to SR53.3 billion, Argaam data showed.

The Riyadh-based company attributed the results to higher average selling prices and sales volume, despite an increase in feedstock prices and selling expenses.

A higher share in the results of associates, including SABIC Agri-Nutrients which posted a 262 percent rise in quarterly profit, also beefed up the company’s performance.

“The second quarter’s strong financial results demonstrate SABIC’s robust operational performance across the different segments,” said Yousef Al-Benyan, CEO of SABIC.

“Our commitment to sustainability and innovation was evident through winning two silver and three bronze awards in the prestigious Edison Awards. These awards also reflect our commitment to helping achieve our long-term objective of carbon neutrality by 2050,” he added.

 Among the major developments this quarter, SABIC started pre-commissioning activities at its China plant in partnership with China Petroleum & Chemical Corp., Sinopec. The plant has an annual production capacity of 260,000 tons.

The company’s board recommended a SR2.25 per share cash dividend for the first half of the year, representing a total payout of SR6.75 billion and a 29 percent increase from the same period in 2021.

SABIC also outperformed when it comes to half-year performance, reporting a 15 percent profit increase to SR14.4 billion as well as a 36 percent higher revenue of SR109 billion for the first half of 2022.