RIYADH: Saudi Basic Industries Corp. reported a 127.59 percent increase in net profit in the first quarter of 2023 compared to the previous three months. The firm registered SR660 million ($176 million) in net profit in the three months to the end of March 2023 — up from SR290 million in the final quarter of 2022. In a statement to Tadawul, the chemical manufacturing giant said improved profit margins and lower operating costs drove the quarterly net profit rise. However, SABIC’s net profit dipped 89.8 percent year-on-year in the first quarter, as the company had clocked a profit of SR6.47 billion in the same quarter of 2022. The company noted that the slump was due to lower average selling prices, sales volumes and weak results from associates and joint ventures. The Tadawul statement further noted that SABIC’s total revenue for the first quarter stood at SR39.69 billion, down 24.6 percent compared to the same period a year ago. The firm’s total revenue in the first three months of 2023 was also down 8 percent compared to the final quarter of 2022. “We are closely monitoring the changes and the recovery of the global market demand. New capacities in Q1 2023 are adding more pressure on global prices, while there is limited relief on variable cost,” said Abdulrahman Al-Fageeh, CEO of SABIC. He added: “We continue to keep our operating costs under control and maintain our strong balance sheet. Despite current market uncertainties, our determination to deliver on growth, innovation and sustainability remains intact.” Al-Fageeh further noted that the Shareek program in Saudi Arabia is pivotal in catalyzing the next phase of SABIC’s growth. Launched in 2021, the initiative aims to unlock SR5 trillion in domestic private sector investments by 2030 and contribute to the goals in Vision 2030, which target an increase in private sector gross domestic product contribution to 65 percent. “The Shareek program will play a key role in the next growth phase of SABIC. The first package of initiatives was launched during this first quarter of 2023, whereby SABIC will contribute to the transformation of Saudi Arabia into a manufacturing hub for specialized materials through a strategic project to build and manufacture catalysts,” Al-Fageeh added. Regarding the future outlook, SABIC said it expects an average global GDP rate of 2.1 percent for 2023, while high inflation and interest rates will continue to add to the uncertainty of global demand growth.