Acting Chief Executive of Saudi Basic Industries Corp (SABIC), Yousef Abdullah al-Benyan, announced that the giant company has recorded an 18% slash in its Q2 costs of 2016, down from the first three months of the year, Reuters reported. On the sidelines of a news conference, Al-Benyan said that the firm was helped by the restructuring program as well as the drop in feed-stock prices in Europe and China.

On the other hand, Q2 has witnessed an 18.1% drop in sales from a year earlier, standing at $9.2b due to lower product prices that weighed on SABIC’s business. The net profit of the company surged by 23.2% reaching $1.26b, marking its eighth successive quarterly profit decline.

Both oil prices and economic growth have an impact on SABIC’s performance since that its products are used extensively in construction, agriculture, industry, and the manufacturing of consumer goods.

SABIC and a US affiliate to Exxon have recently announced they are considering constructing a jointly owned petrochemical complex on the US Gulf Coast.