A strong performance in the Middle East helped the Dow Chemical Company increase sales by 23 per cent to $16.4 billion for the second quarter of this year.

Double-digit price increases were recorded in all operating segments and all geographic areas, with strong performance in the India, Middle East and Africa (IMEA) region.

The IMEA region posted a sales increase of 65pc from the same period last year to $487 million. Volume in the region increased 47pc, while price rose 18pc.

The region played a significant role in delivering strong volume gains seen primarily in the performance chemicals and basic chemicals businesses, the company said.

Global net income for the quarter was $762m.

Equity earnings were $251m, once again demonstrating strong and consistent contributions from joint ventures to the company's results, the company added.

"The surge in oil prices from first to second quarter added another $1bn of cost sequentially, and we reacted quickly by announcing two broad-based price increase initiatives, adjusting plant operating rates and implementing additional cost-cutting measures," said chairman and chief executive officer Andrew Liveris.

"The fast implementation of these price increases limited margin compression to approximately $130m in the quarter," he said.

"This is a remarkable performance when you consider that this is only 1pc to 2pc of our total quarterly hydrocarbon and energy costs.

"These short-term actions, in addition to key elements of Dow's strategy, such as our large global footprint, our investments in performance businesses and our asset light ventures, enabled us to weather unparalleled increases in hydrocarbons, supply chain and other costs," Liveris added.

"As the Middle East petrochemicals industry continues to evolve and expand, we remain focused on our regional growth strategy," said Dow Chemical IMEA president John Dearborn.

"Significant developments, such as our pending joint venture with Petrochemical Industries Company (PIC) of Kuwait, to be called K-Dow Petrochemicals, and our mega project with Saudi Aramco in Saudi Arabia will enhance our ability to consistently deliver innovation and continuously grow with our customers in the Middle East."

Dow has eight current and proposed Middle East joint ventures in the UAE, Egypt, Kuwait, and Libya as well as in Saudi Arabia, where Dow and Saudi Aramco are in the negotiation phase for the formation of a joint venture to build, own and operate a world-scale chemicals and plastics production complex in the Eastern Province. - TradeArabia News Service