Latest news with #AbdulrahmanAl-Fageeh
Asharq Al-Awsat
05-05-2025
- Business
- Asharq Al-Awsat
SABIC Expects Capital Expenditure of $4 Bn in 2025
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.
Zawya
05-05-2025
- Business
- Zawya
SABIC's growth projects progressing as planned: CEO
Saudi Basic Industries Corporation's (SABIC) growth projects are progressing according to plan, according to CEO Abdulrahman Al-Fageeh. The projects include the Petrokemya Methyl Tertiary-Butyl Ether (MTBE) plant in Jubail and the SABIC Fujian petrochemical complex in China's Fujian province. Additionally, SABIC commissioned the Ibn Zahr LTRS-1 project, which aims to enhance feedstock utilisation and reduce the carbon footprint, Al-Fageeh said in the company's first quarter 2025 financial statement. The CEO ruled out tariffs' negative impact on global demand and customer preference for its product portfolio, Aragaam, an Arabic financial portal, reported. (Editing by Anoop Menon) (
Zawya
05-05-2025
- Business
- Zawya
SABIC reports net loss of $323mln in Q1 2025
Saudi Basic Industries Corp. (SABIC) reported a net loss of 1.21 billion Saudi riyals ($322.65 million) in Q1 2025, compared to a net profit of SAR 250 million a year ago. The losses were driven by higher feedstock prices and an increase in other operating expenses, mainly due to a non-recurring cost of SAR 1.07 billion. In April, Riyad Capital expected SABIC's net profit to fall 47% year-on-year (YoY) to SAR 130 million in Q1 2025 compared to SAR 246 million in Q1 2024. However, revenue rose by 6% year-on-year to SAR 34.59 billion, matching the previous quarter. Sales performance was stable, supported by slightly higher production volumes in chemicals and polymers, although overall sales volumes were marginally lower, particularly in agri-nutrients and polymers segments. Despite the ongoing macroeconomic uncertainties, SABIC continued to demonstrate resilience, supported by stable demand, said CEO Abdulrahman Al-Fageeh. 'Our EBITDA for the quarter stood at SAR 2.5 billion, impacted by strategic restructuring initiative that will positively reflect on the company's future financial results through cost reduction and performance efficiency enhancement,' he added. The CEO said that SABIC will focus on driving operational excellence, advancing transformation, and pursuing selective growth in 2025, while maintaining financial discipline and delivering long-term value. Quarter-on-quarter, net loss narrowed from SAR 1.89 billion in Q4 2024, thanks to higher associate profit and finance income.
Saudi Gazette
04-05-2025
- Business
- Saudi Gazette
SABIC reports SR1.2 billion loss in Q1 2025
Saudi Gazette report RIYADH — SABIC announced on Sunday a net loss of SR1.2 billion for the first quarter of 2025 — a 36% improvement from the SR1.9 billion loss recorded in the previous quarter, driven by one-time restructuring costs and continued global market pressures. CEO Abdulrahman Al-Fageeh attributed the quarterly loss primarily to expenses related to business restructuring, which he said are expected to yield positive long-term results by enhancing cost control. He also cited a global economic slowdown, market uncertainty, and oversupply in the petrochemical sector as key factors impacting demand and margins. 'The oversupply of petrochemicals continues to pressurize product prices and, in turn, profit margins,' Al-Fageeh said at a press conference held at SABIC headquarters in Riyadh on May 4. Despite the challenging environment, Al-Fageeh highlighted improvements in SABIC's Environment, Health, Safety, and Security (EHSS) performance, noting a 17% year-on-year enhancement in the company's Safety, Health, and Environment Rate (SHER). He reaffirmed SABIC's strong financial standing and ongoing efforts to optimize costs, improve efficiency, and maintain competitiveness globally. Al-Fageeh also emphasized that SABIC's strategic growth projects remain on track and aligned with planned timelines. SABIC's CEO spotlighted the company's global innovation achievements, including six Edison Awards received this year — the fifth consecutive year SABIC has earned such recognition for its industrial solutions.
Trade Arabia
04-05-2025
- Business
- Trade Arabia
SABIC losses narrow to $320m in Q1
SABIC, a global leader in chemicals, reported a net loss of SAR1.2 billion ($320 million) for the first quarter of 2025, representing a 36% improvement compared to a net loss of SAR1.9 billion in the previous quarter. Commenting on the results, Abdulrahman Al-Fageeh, SABIC CEO, said the loss in the first quarter is attributed to the one-time costs related to business restructuring, which, he stressed, 'will reflect positively on the company's long-term financial results and contribute to controlling its expenses.' He also pointed out to the slowdown in the global economy and the continued uncertainties that negatively affected the markets, saying that these are some of the reasons for the decline in demand for petrochemical products. 'The oversupply of petrochemicals continues to pressurize product prices and, in turn, profit margins,' he added. The SABIC CEO commended the company's EHSS performance, highlighting its continued world-class excellence within the petrochemical industry. The first quarter saw an improvement of 17% in the company's Safety, Health, and Environment Rate (SHER), compared to the same period last year. At a press conference at the company's headquarters in Riyadh on Sunday, Al-Fageeh reviewed the latest developments related to SABIC's operations and activities, reaffirming the company's strong financial standing despite the significant challenges facing the global economy. He emphasised SABIC's commitment to continue its cost optimisation efforts aimed at boosting efficiency and strengthening competitiveness. He also highlighted the role of the company's strategic plans and programs in driving further growth across global markets, stressing that all growth projects are progressing in line with their planned timelines. Al-Fageeh further highlighted the Edison Awards that SABIC received this year for six of its innovative solutions that meet the rapidly changing customer needs in various industrial sectors around the world. SABIC has won this recognition for the fifth consecutive year.
