Sabic shareholders approve $1.6bn dividend for second half of 2022

Company has benefited from overall rise in demand for chemicals and feedstock as economic activity ramps up

Sabic is the Middle East’s biggest petrochemicals company. Reuters

The board of Saudi Basic Industries Corporation (Sabic), the Middle East's biggest petrochemicals company, approved a dividend of 6 billion Saudi riyals ($1.6 billion) for the second half of 2022, as the company continues to post profits amid a market recovery.

The second-half cash dividend is 2 riyals a share, Sabic said in a statement on Tuesday to the Tadawul Stock Exchange, where its shares are traded.

The dividend will be distributed to shareholders “who own the company shares on the eligibility date and enrolled in the company's register at Securities Depository Centre Company (Edaa) by the end of the second trading day following the due date … corresponding to March 13, 2023”, the company said.

Sabic has called upon its shareholders to update their data and ensure that their bank account numbers are linked to their investment portfolios to ensure that their dividends are deposited into their accounts.

Sabic reported a 3.8 per cent increase in second-quarter profit as revenue rose on higher average selling prices and volumes.

Net profit after zakat and tax for the three months to the end of June increased to 7.93 billion riyals, from 7.64 billion riyals in the same period last year.

Revenue during the period rose 32 per cent year-on-year to nearly 56 billion riyals.

Manufacturers of chemicals such as Sabic have benefited from an overall rise in demand for chemicals and feedstocks as economic activity ramps up amid a relaxation of movement curbs and a fall in Covid infections globally.

Looking ahead to the second half of this year, Sabic expects its margins to be under pressure due to a slowdown in global economic growth, lockdowns in China, conflict in Europe and continued supply chain challenges.

Last month, Sabic said it was planning to set up a plant to convert crude oil into petrochemicals, capitalising on growing demand.

The crude-to-chemicals complex in Ras Al Khair, in the east of Saudi Arabia, is expected to convert 400,000 barrels per day of oil into chemicals, the company said.