07/05/2025 02:24 AST

Saudi Basic Industries Corporation (SABIC), one of the world's largest petrochemical companies, reported a net loss of 1.21 billion riyals ($322.6 million) for the first quarter of 2025, reflecting continued pressure on the global petrochemical sector.

Despite this, the company is maintaining disciplined capital investment management, with capital expenditure expected to range between $3.5 billion and $4 billion in 2025.

The loss was primarily attributed to a 1.05 billion riyal decline in gross profit, driven by rising feedstock prices, along with non-recurring costs of 1.07 billion riyals linked to a strategic restructuring initiative aimed at streamlining annual costs by approximately 345 million riyals and improving long-term operational efficiency.

SABIC CEO Abdulrahman Al-Fageeh, speaking at a press conference following the release of the company's results, highlighted ongoing challenges in the global economy, including a slowdown in global GDP growth.

"The first quarter business environment was marked by uncertainty, with global economic growth at just 2.97%, along with a slowdown in the manufacturing PMI, which intensified challenges for the sector," he said.

Despite the losses, Al-Fageeh noted SABIC's remarkable resilience, supported by what he described as "stable demand" for petrochemicals. He emphasized the company's continued focus on operational excellence and its transformation efforts throughout the year.

SABIC projects its capital expenditure to range between $3.5 billion and $4 billion in 2025, reaffirming its commitment to creating long-term value through operational excellence, transformation, and systematic growth as part of its future vision.

Mohammed Al-Farraj, Head of Asset Management at Arbah Capital, commented to Asharq Al-Awsat that initial forecasts from various research firms prior to the results announcement were mixed. While some expected a significant year-on-year drop in net profit, others predicted revenue growth.

"Looking at the reported results, we see that revenue aligned with expectations, indicating slight year-on-year growth, while the reported net loss was smaller than some estimates, which had anticipated larger losses," Al-Farraj said.

"However, the results still fall short of profits from the same period last year. It is important to consider the impact of one-time restructuring costs when making comparisons," he explained.


Asharq Al Awsat

Restructuring Moves SABIC to Reclaim Ground in the Petrochemicals Race

22/08/2025

The global petrochemicals industry is grappling with a wave of uncertainty. Sluggish economic growth in key markets, mounting geopolitical tensions, and trade barriers are weighing on demand. Adding

Asharq Al Awsat

Saudi Arabia's SABIC maintains $1.19bn dividend, signaling sector confidence

04/08/2025

Chemicals production company Saudi Basic Industries Corp. announced the distribution of interim cash dividends amounting to SR4.5 billion ($1.19 billion) for the first half of the year.

Sha

Arab News

Saudi chemicals group SABIC studying IPO of its gas unit

10/07/2025

Saudi chemicals group SABIC said on Wednesday it was studying strategic options for its National Industrial Gases Company, including an initial public offering, amid a broad review of its business. <

Reuters

Ticker Price Volume
SABIC Sector Market
P/E
Price/BookValue
Dividend Yield (%)
Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
MAADEN 52.20 -0.55 (-1.05%)
SABICAGRINUTRIENTS 121.40 -1.60 (-1.31%)
LIMEINDUSTRIES 12.45 0.00 (0.00%)
APICO 42.90 0.00 (0.00%)
YANSAB 32.86 -0.44 (-1.33%)
Adnoc signs 15-year LNG sales & purchase agreement with IndianOil for Ruwais LNG project

28/08/2025

Adnoc announced on Wednesday that it has signed a 15-year sales and purchase agreement (SPA) with Indian Oil Corporation Ltd (IndianOil), India's largest integrated and diversified energy company, fo

Khaleej Times

Kuwait Airways and Impulse sign strategic agreement

28/08/2025

In a significant step towards enhancing its digital transformation journey, Kuwait Airways signed a Master Services Agreement (MSA) with Impulse International for Telecommunications, laying the foun

Kuwait Times

Vodafone Qatar launches 'You Deserve It' campaign

28/08/2025

Vodafone Qatar has announced its expansion of Postpaid services through its new 'You Deserve It!' campaign, introducing new connectivity and digital lifestyle offerings to meet the evolving needs of

Gulf Times

Commercial Bank first bank in Qatar to offer Visa Commercial Pay to SMEs

28/08/2025

Commercial Bank, a leader in innovative digital banking solutions, has launched Visa Commercial Pay (VCP), a groundbreaking virtual payment platform designed to transform how Small and Medium-Sized E

The Peninsula

Borouge join forces with Yokogawa on autonomous AI control room

28/08/2025

Abu Dhabi-based petrochemicals company Borouge has announced that it has collaborated with Yokogawa, a leading provider of advanced automation technologies and solutions, to conduct a proof-of-concep

Trade Arabia