RIYADH: Chemical major Saudi Basic Industries Corp.’s financial results for the first quarter were unprecedented, but cost pressures are expected to weigh on earnings for the rest of the year, CEO Yousef Al-Benyan said. The company earlier today announced a 33 percent surge in profits for the first quarter, buoyed by 40-percent growth in sales to SR53 billion ($14 billion). Speaking at SABIC’s post-earnings announcement conference, Al-Benyan highlighted that this year’s results are “unprecedented.” He reiterated that solid figures were supported by enhanced diversification of products, higher oil prices and stronger global reach, with SABIC’s latest ExxonMobil venture in the US Gulf Coast contributing largely to the results. Still, a drop in demand on the back of higher inflation and interest rates as well as rising feedstock costs and supply chain woes remain a challenge. “The average of the cost increased by 3 percent compared to the fourth quarter in 2021, and by 90 percent from the first quarter of 2021,” Al-Benyan noted. According to the executive, the global economic slowdown is anticipated to weigh on demand for chemicals in the second half. That said, SABIC stated in its earnings presentation that pre-tax earnings are expected to be flat this year because of higher sales volumes, offset by a rise in feedstock prices. Al-Benyan concluded that geopolitical tensions which sent oil prices to record levels posed no threat to SABIC’s operations, adding that it still doesn’t plan to enter the debt market.