SABIC Returns to Profit in Q1 2026, Posting Net Earnings of $3.52 Million
Chemical producer attributes rise in net profit to decline in other operating expenses and ongoing cost control measures.
Saudi Basic Industries Corp., also known as SABIC, reported a net profit of SR13.2 million ($3.52 million) for the first quarter of 2026, marking a significant improvement compared to the SR1.21 billion loss in the same period a year earlier.
The Riyadh-based chemical producer's adjusted net income stood at SR816 million, calculated as net cash from operating activities minus capital expenditure.
SABIC attributed its return to profit primarily to a decline in other operating expenses and continued efforts in cost control and restructuring initiatives.
The company’s revenue for the first quarter was SR26.15 billion, representing a 10.65 percent annual decline and a 6.4 percent decrease from the previous quarter.
SABIC stated that the decrease in revenue was primarily driven by lower sales volume and average selling prices compared to the previous year.
The firm's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first quarter increased by 36 percent compared to the preceding quarter, reaching SR4.15 billion.
SABIC also reported a negative free cash flow of SR270 million in the first quarter due to higher working capital requirements.
In terms of selective growth, the company is advancing several capital projects and continues with the execution of the SABIC Fujian project, which has reached approximately 98 percent completion.
Additionally, SABIC is proceeding with previously announced agreements to divest its European Petrochemicals business and Engineering Thermoplastics business in the Americas and Europe, aligning with its strategy to enhance capital allocation and strengthen financial resilience.
Faisal Al-Faqeer, CEO and executive board member of SABIC, emphasized the company's commitment to operational excellence and strategic initiatives aimed at portfolio optimization, corporate transformation, and selective growth.
The return to profitability by one of the world’s largest petrochemical producers, which is 70 percent owned by Saudi Aramco, underscores the impact of restructuring measures and cost control efforts in navigating the challenges faced by the global petrochemical industry.
The Riyadh-based chemical producer's adjusted net income stood at SR816 million, calculated as net cash from operating activities minus capital expenditure.
SABIC attributed its return to profit primarily to a decline in other operating expenses and continued efforts in cost control and restructuring initiatives.
The company’s revenue for the first quarter was SR26.15 billion, representing a 10.65 percent annual decline and a 6.4 percent decrease from the previous quarter.
SABIC stated that the decrease in revenue was primarily driven by lower sales volume and average selling prices compared to the previous year.
The firm's earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first quarter increased by 36 percent compared to the preceding quarter, reaching SR4.15 billion.
SABIC also reported a negative free cash flow of SR270 million in the first quarter due to higher working capital requirements.
In terms of selective growth, the company is advancing several capital projects and continues with the execution of the SABIC Fujian project, which has reached approximately 98 percent completion.
Additionally, SABIC is proceeding with previously announced agreements to divest its European Petrochemicals business and Engineering Thermoplastics business in the Americas and Europe, aligning with its strategy to enhance capital allocation and strengthen financial resilience.
Faisal Al-Faqeer, CEO and executive board member of SABIC, emphasized the company's commitment to operational excellence and strategic initiatives aimed at portfolio optimization, corporate transformation, and selective growth.
The return to profitability by one of the world’s largest petrochemical producers, which is 70 percent owned by Saudi Aramco, underscores the impact of restructuring measures and cost control efforts in navigating the challenges faced by the global petrochemical industry.
