SABIC posts $1.41 billion loss in H1 2025 on UK plant closure, restructuring costs
RIYADH — Saudi Basic Industries Corp. (SABIC), the Middle East's largest petrochemicals and fertilizers producer, reported a net loss of SR5.28 billion ($1.41 billion) for the first half of 2025, compared with a profit of SR2.43 billion in the same period last year.
The company attributed the loss mainly to a SR3.78 billion impairment charge tied to the closure of its Teesside cracker unit in the United Kingdom during the second quarter, part of a portfolio review aimed at cutting costs and improving profitability.
Additional factors included SR1.07 billion in one-off restructuring costs, a SR1.07 billion drop in income from non-integrated joint ventures and associates — largely due to asset write-downs in Europe — and a SR694 million zakat expense, compared with a SR214 million non-cash gain a year earlier.
H1 revenues rose 3% year-on-year to SR70.16 billion, driven by higher sales volumes despite lower average selling prices. The figure included SR863 million from licensing and engineering services.
For the second quarter, SABIC reported losses versus a profit in the year-ago period, citing the Teesside impairment, a SR1.02 billion decline in earnings from joint ventures and associates, a SR517 million increase in equity derivative costs from revaluation, and zakat expenses of SR284 million, compared with a SR545 million non-cash gain in Q2 2024. Quarterly revenues were stable at SR35.57 billion.Compared to the first quarter, the second-quarter loss widened on the back of the Teesside impairment, an SR838 million drop in JV and associate results, and a SR455 million increase in equity derivative costs. Revenues rose 3% from the previous quarter.Shareholders' equity, excluding minority interests, stood at SR153.88 billion at the end of the period, down from SR163.91 billion a year earlier.SABIC said it has adopted adjusted financial indicators from Q2 2025 to strip out non-recurring items and provide a clearer view of operational performance.The company also restated certain 2024 opening balances to reflect adjustments to its investment in Marafiq, a 17.5% associate, with no impact on income statements.The company reiterated it is still evaluating strategic options for its subsidiary, National Industrial Gases Co. (GAS), including a potential IPO, subject to regulatory approvals and market conditions.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Saudi Gazette
4 hours ago
- Saudi Gazette
Syrian minister to visit Riyadh on Monday to deepen economic cooperation
Saudi Gazette report RIYADH — Saudi Arabia will welcome a Syrian delegation to Riyadh on Monday, led by Minister of Economy and Industry Dr. Mohammad Nidal Al-Shaar, for an official visit aimed at strengthening economic ties between the two countries. The delegation includes representatives from both nations' private sectors and reflects a shared commitment to enhancing regional integration and building economic bridges. The visit follows the outcomes of last month's Saudi-Syrian Investment Forum, which was held under the patronage of Syrian President Ahmad Al-Sharaa and brought together over 100 Saudi companies and 20 Saudi government entities. The forum concluded with the signing of 47 investment agreements in key sectors valued at more than SR24 billion ($6.4 billion). The deals span real estate, infrastructure, finance, ICT, energy, industry, tourism, trade, investment, and healthcare.
Saudi Gazette
8 hours ago
- Saudi Gazette
Dr. Fahd Toonsi appointed chief of Saudi Red Sea Authority
Saudi Gazette report RIYADH — Dr. Fahd Toonsi, advisor at the Royal Court, has been appointed chairman of the Board of Directors of the Saudi Red Sea Authority (SRSA). A royal approval was issued in this regard, the Saudi Press Agency reported. The SRSA Board of Directors thanked Crown Prince and Prime Minister Mohammed bin Salman for the appointment. 'The approval comes as an extension of the continuous support provided by the wise leadership to enhance the Kingdom's position on the world map and enable a thriving coastal tourism economy,' the board said in a statement. On his part, Toonsi expressed his gratitude to Minister of Tourism Ahmed Al-Khateeb for the efforts made while he was chairing the SRSA Board of Directors in the past, and the tangible achievements that contributed to achieving the goals of the Kingdom's Vision 2030. Dr. Toonsi earlier served as secretary general of SRSA, which is responsible for overseeing tourism development on Saudi Arabia's west coast, including the Red Sea Project.
Saudi Gazette
a day ago
- Saudi Gazette
Justice Ministry launches unified translation services via e-litigation platform
Saudi Gazette report RIYADH — The Ministry of Justice has launched the Unified Translation Center services on the e-Litigation platform to manage all judicial translation requests and processes from initiation to completion. This is designed to accelerate services, improve output quality, and integrate translation functions with the platform's case management system. The new services automate the receipt of translation requests submitted by beneficiaries through lawsuits or judicial departments, coordinate their distribution among translators, and enable supervision and follow-up on their implementation status. The system also organizes the center's operational processes, ensuring efficient workflow management. Through the e-Litigation platform, beneficiaries can track their requests step by step, enhancing service efficiency, accelerating litigation procedures, and raising the overall quality of judicial services.
