Saudi Basic Industries Corp.’s profit jumped as the reopening of the global economy led to higher demand for its products used in everything from packaging to buildings and agriculture. Net income was SAR4.86bn ($1.3bn) in the first quarter, more than double the level of the previous three-month period. It was also turnaround from a loss of SAR1.05bn a year ago. While sales volumes fell 8 per cent from the fourth quarter, average prices rose by 22 per cent, the Riyadh-based company, controlled by Saudi Aramco.
Revenue rose 24 per cent year-on-year to SAR37.5bn and 14 per cent from the previous quarter. Sabic benefits from subsidized raw materials such as oil and gas from its parent. The company didn’t provide any update on the potential initial public offering of its specialty unit. The shares fell 2.5 per cent to SAR124.60 at 11.15am in Riyadh. The company’s stock is up 74 per cent in the past year and its market value rose above $100bn this week for the first time in almost two years.