Saudi Basic Industries Corporation (Sabic), the Middle East's biggest petrochemicals firm, on Thursday reported a five-fold increase in third-quarter net profit on the back of higher average selling prices. Net profit for the three months to the end of September surged to 5.59 billion Saudi riyals ($1.5bn) the company said in a statement on Thursday to the Tadawul stock exchange, where its shares trade. Revenue rose 29.3 percent to 43.7bn riyals during the period. Net income was helped not only by higher average selling prices but also by an increase in its share of results from joint ventures and associates, SABIC said. Unlike the third quarter of last year, there were also no material impairments. Despite the increase in average sales prices, there was a moderation in margins due to rise in feedstock costs, it said. "SABIC's healthy financial performance during the third quarter of 2021 marked a continuation of our recovery from the impact of COVID-19, albeit at a lower level than our exceptionally strong performance during the second quarter," CEO Yousef Abdullah Al-Benyan said in a statement. Al-Benyan later told reporters it will initially cost the company between $3 billion and $4 billion to achieve net-zero carbon emissions by 2050, having set the target this week. SABIC is 70% owned by Saudi Aramco. — Agencies
