Saudi Arabia: Saudi Basic Industries Corp. has reported a 28.35 percent fall in its net profit to SR16.53 billion ($4.40 billion) for 2022, due to a lower profit margin amid rising distribution costs. 

According to a bourse filing, however, the company’s total revenue soared by 13 percent to SR198.47 billion in 2022, up from SR174.88 billion recorded in 2021. 

“SABIC 2022 results remain strong despite challenging market conditions. Our sales volumes continue to grow, exceeding the previous year’s sales by 9 percent and driven by growth projects, improved reliability, inventory optimization and synergies with Saudi Aramco,” said Abdulrahman Al-Fageeh, SABIC’s acting CEO. 

In a statement given to the Saudi stock exchange, SABIC said the decrease in its net income is mainly attributable to lower profit margins for most of its key products which were driven by higher feedstock prices in addition to an increase in selling and distribution costs. 

The company’s earnings before interest, taxes, depreciation and amortization for 2022 stood at SR38.57 billion, a 20 percent fall compared to 2021. 

The Tadawul statement further noted that SABIC’s income from operations was SR23.88 billion in 2022, 29 percent lower than the previous year.