RIYADH: Sadara Chemical Co., a joint venture between oil major Saudi Aramco and US Dow Chemical Co., has posted an 88 percent drop in profit for the first half of 2022.
On the back of higher feedstock prices, profits of the giant JV went down from SR2.2 billion ($592 million) to SR275 million, a bourse filing showed.
This was coupled with revenues amounting to SR8.3 billion during the six-month period, almost unchanged from the same period in 2021.
“The decrease in net profit in the current period compared to the same period of the last year is mainly attributable to the recognition of modification gain of SR1.05 billion from debt reprofiling during the previous year,” Sadara said in the filing.
Specialized in producing a wide range of specialty chemicals, the firm added that its profits were hit by an increase in feedstock costs and lower average sales prices.
