Saudi Basic Industries Corporation (<a href="https://www.thenationalnews.com/business/2022/02/03/sabic-fourth-quarter-net-profit-more-than-doubles-on-higher-selling-prices/" target="_blank">Sabic</a>), the Middle East's biggest <a href="https://www.thenationalnews.com/business/energy/quick-take-what-are-petrochemicals-1.796449">petrochemicals </a>firm, has approved a dividend of 6.75 billion Saudi riyals ($1.8bn) for the second half of 2021, on the back of a strong performance last year. The second-half cash dividend of 2.25 riyals a share represents 22.5 per cent of the nominal share value and will be distributed to eligible shareholders on April 25, the company <a href="https://www.saudiexchange.sa/Resources/fsPdf/7583_381_2022-04-10_23-58-24_en.pdf" target="_blank">said in a statement</a> on Monday to the Tadawul Stock Exchange, where its shares are traded. Sabic will pay a dividend of 12bn riyals for 2021, having previously approved a 5.25bn riyals cash dividend for the first half of 2021 at 1.75 riyals per share, despite economic headwinds sparked by the Covid-19 pandemic. The company faced two global challenges in 2021 — the pandemic and the threat of climate change, Sabic chairman Khalid Al-Dabbagh said. “To this very day, the coronavirus’ lingering persistence is causing market volatility and supply-chain disruption. Nevertheless, I am heartened by how we persevered with our business to achieve an admirable performance in 2021," he said. “As for our response to climate change, the expectations of our customers, lenders and other stakeholders are now sky high … we are incorporated in a country whose wise leaders have a vision of how the goals of the Paris Agreement can best be met in a way that respects the principles of sustainable economic growth." Sabic has committed to make all operations under its control carbon neutral by 2050. The company is majority owned by the world’s largest oil exporting company Saudi Aramco, which acquired a 70 per cent stake in Sabic in 2020 for $69bn. Sabic has 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-19 infections globally. It reported a surge in annual net income to 23bn riyals in 2021 from 70 million riyals in the previous year, due to higher average selling prices and an increase in the share of results of its joint ventures and associates. Its performance last year was “extremely robust”, Sabic’s vice chairman and chief executive Yousef Al-Benyan said on Monday. “We also followed through on our transformational strategy, achieving a great value realisation with Saudi Aramco … we continued to focus on strong capital discipline, which helped to support higher dividends and position Sabic well for future growth opportunities,” Mr Al-Benyan said. Sabic expects higher incremental sales volumes in 2022 due to transfer of the sales and marketing rights of chemicals and polymers products from Saudi Aramco, starting up new assets and continuous improvement in reliability of its assets, it said in February.