RIYADH: Chemical giant Saudi Basic Industries Co. expects profit margins to remain under pressure in the second half, despite posting a nearly 4 percent surge in second-quarter earnings, as cost burdens persist.
“Due to slowdown in global gross domestic product growth, lockdowns in China, conflict in Europe, and continued supply chain challenges, we expect margins to be under pressure in the second half of 2022,” SABIC said in a statement.
It added that GDP is estimated to grow at a rate between 2.5 percent and 2.8 percent, compared to 3.2 percent and 3.6 percent previously.
The Saudi-listed firm made SR7.93 billion ($2.1 billion) in profits during the second quarter of 2022, up from SR7.6 billion in the same period a year earlier.
It beat analysts’ expectations of a 23-percent profit decline to SR5.9 billion, Argaam data showed.
