Petrochem turns to SAR 914 mln profit in H1 2021

National Petrochemical Co. (Petrochem) reported a net profit after Zakat and tax of SAR 914 million for the first half of 2021, against a net loss of SAR 139 million a year earlier.

The positive performance was backed by an increase in the average selling prices of products and depreciation of the polystyrene unit value during the same quarter of 2020. Moreover, the company also cited reduced Zakat provision for previous years by SAR 94 million, as well as lower general and administrative expenses, and financial costs.

In Q2 2021, Petrochem swung to a net profit after Zakat and tax of SAR 603 million, against a net loss of SAR 189 million in the year-ago period, driven by higher average selling prices of products and depreciation of the polystyrene unit value during the same quarter of 2020. The company also reported reduced the Zakat provision for previous years by SAR 94 million, lower general and administrative expenses, and financial costs.

On a sequential basis, net profit surged 93.9% from SAR 311 million.