Saudi Basic Industries Corp. (Sabic), the largest chemical company in Saudi Arabia, surpassed analysts' expectations with its second-quarter profit, signaling potential recovery in an industry facing prolonged challenges. The company reported a profit of 2.18 billion riyals ($581 million), marking an 85% increase, as it saw margin improvements for some of its products. This comes as a glimmer of hope amid global concerns, with industry giants like BASF SE and Lanxess AG experiencing mixed results and cautioning against broad market recovery.

Despite a 6% drop in Sabic's shares this year, the company trades at a premium compared to peers like BASF and Dow Inc., thanks to its access to cheaper feedstock. Majority-owned by Saudi Aramco, Sabic is seen by some analysts as having potential for revenue growth, with projections to surpass $40 billion in 2024. However, not all analysts are optimistic. Citigroup Inc. warns that expectations for a quick return to normal conditions in the chemicals sector may be overly optimistic, highlighting the ongoing uncertainties in the market.