Arab News, Tuesday, Feb 28, 2023 | Sha'ban 08, 1444
SABIC’s net profit drops over 28% to $4.40bn in 2022
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.