Latest news with #AbdulrahmanAlFageeh
Zawya
4 days ago
- Business
- Zawya
SABIC's Fujian complex, Petrokemya MTBE plant 'progressing on budget'
Saudi Basic Industries Corporation's (SABIC) Fujian complex in China and the Petrokemya MTBE plant are "progressing on budget", CEO Abdulrahman Al-Fageeh said in the financial statement for the second quarter 2025. The work on the projects is ongoing as per the planned schedule, he added. The construction of the Fujian complex commenced in February 2024, which is expected to be completed in 2026. The complex will generate a production value of 30 billion renminbi ($4.3 billion) per year in operations and over RMB 100 billion of upstream and downstream investments. The company's new MTBE plant at Petrokemya, Jubail, is the single largest MTBE production plant in the world, with nameplate capacity increasing to 1,000 kilotonnes per annum. Al-Fageeh said the company has advanced its digital transformation journey, deploying over 490 artificial intelligence (AI) models across manufacturing operations to enhance energy efficiency, planning, and emissions performance. The cost optimisation initiatives were launched in the first quarter of 2025 as part of SABIC's broader transformation programme. 'The program aims to deliver, by 2030, a recurring annual EBITDA impact of $3 billion from a combination of cost excellence and value creation,' the CEO said. SABIC maintains a full-year expenditure guidance in the range of $3 to $3.5 billion, Al-Fageeh said. The net cash position stands at 2.71 billion Saudi riyals as of 30 June 2025, compared to a net debt position of SAR 0.88 billion as of 31 March 2025. (Editing by Anoop Menon) (
Asharq Al-Awsat
6 days ago
- Business
- Asharq Al-Awsat
SABIC Announces Second Quarter 2025 Financial Results
SABIC announced its financial results for the second quarter of 2025, with an adjusted net income of SAR0.5 billion compared to an adjusted net loss of SAR0.1 billion in the previous quarter, an increase of SAR555 million compared to the previous quarter. The company's revenue in the second quarter was SAR35.6 billion, compared to SAR34.6 billion in the first quarter, an increase of 3%. Total sales volume in the second quarter was 11,779 thousand metric tons, compared to 11,477 thousand metric tons in the first quarter, an increase of 3% due to higher sales volumes, offset by lower average sales prices, together with recognizing licensing and engineering services revenue, SPA reported. SABIC CEO Abdulrahman Al-Fageeh said that as of the second quarter of 2025, SABIC has adopted adjusted financial metrics, which exclude non-operational and one-off incidents, to reflect the true operational performance and organic and sustainable growth, while maintaining full compliance with disclosure requirements of the financial market. Al-Fageeh praised SABIC's EHSS performance, pointing out that the company has achieved HSE rate of 0.07 during the first half of this year, lower than petrochemical peers globally, and its lowest over the past 10 years. The announcement of SABIC's Q2 financial results and performance was at a press conference held at its headquarters in Riyadh, where Al-Fageeh spoke about the latest developments related to the company's operations and activities. "The Board of Directors has approved the distribution of SAR4.5 billion in dividends for the first half of this year, which underscores SABIC's commitment to maximize shareholders' value and ROA, and enhance SABIC's competitive position and investor confidence, while maintaining sufficient resources to achieve financial stability and future strategic growth," he said. Al-Fageeh noted that SABIC will continue to regularly review and optimize its portfolio as part of its transformation program. This includes the closure of its cracker in Teesside, UK, as well as the initiation of several strategic options for its affiliate Gas, including a potential IPO. This comes in line with SABIC's priorities to improve focus on its core business to achieve sustainable growth, strengthen its financial position. "In line with SABIC's growth ambitions, the one million metric ton capacity MTBE project at our Petrokemya affiliate is progressing well, according to planned cost and schedule. The Engineering, Procurement, and Construction (EPC) phase is more than 95% complete and pilot commissioning will occur during Q3 2025,' he added. Al-Fageeh also stressed that SABIC continues to make progress as planned on its Fujian Petrochemical Complex in China project – a flagship project that is driving the company's strategic expansion in Asia.
Arab News
6 days ago
- Business
- Arab News
Saudi Arabia's SABIC maintains $1.19bn dividend, signaling sector confidence
RIYADH: 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. Shareholders owning company shares as of the eligibility date of Aug. 19 will receive a dividend of SR1.50 per share, representing 15 percent of the unit's par value. The distribution is scheduled for Sept. 9, as SABIC emphasized its commitment to distribute competitive dividends in the long term despite the challenges facing the global petrochemical markets. SABIC's decision, despite reporting quarterly losses, underscores its financial resilience and confidence in the long-term strength of the sector. The move aims to reassure investors of consistent returns and signals sector-wide stability, influencing peers across Saudi Arabia. By balancing shareholder payouts with strategic reinvestment, SABIC reinforces its commitment to economic diversification and sustainable growth, aligning with broader national objectives to attract foreign capital and bolster market confidence during global uncertainties. 'Amid ongoing market challenges in the chemical industry, we took a disciplined decision to adjust the dividend in line with current conditions,' said SABIC CEO Abdulrahman Al-Fageeh. 'We remain firmly committed to a balanced capital allocation approach, ensuring competitive dividend distributions across the cycle while supporting long-term value creation,' he added. Meanwhile, SABIC reported several operational achievements for the second quarter of the year. The company was recognized at the seventh King Abdulaziz Quality Award ceremony, where three of its affiliates — Sharq, Gas, and Ibn Zahr — secured gold, silver, and bronze awards, respectively, for their excellence in operational performance, innovation, sustainability practices, and product efficiency. SABIC was also honored with the Best Polymer Producers Award in the Linear Low Density Polyethylene category by the Polymers for Europe Alliance and the European Plastics Converters Association. We have just released an executive summary of our Integrated Annual Report 2024, summarising our key financial and operational highlights in 2024. — SABIC I سابك (@SABIC) July 27, 2025 SABIC received the Excellent Collaboration Award for 2024 from UK-based DENSO Corp., recognizing its contributions to sustainable automotive solutions, particularly through innovations in bio-based and recycled polypropylene materials. SABIC is also reviewing strategic options for its subsidiary, National Industrial Gases Co., including the possibility of an initial public offering, as part of efforts to streamline its portfolio and sharpen its focus on core petrochemical operations. Al-Fageeh said the evaluation aligns with SABIC's strategy to unlock shareholder value and adhere to global best practices in asset optimization within the petrochemical industry. The company is also progressing with key expansion projects, including the MTBE facility in Jubail, which has reached over 95 percent completion and is set to commence trial operations in the third quarter. Additionally, SABIC introduced 58 new products in the first half of the year, including an innovative platform designed for high-performance thermoplastics applications to replace traditional materials, reduce costs, and enhance design flexibility across sectors like automotive, energy, and infrastructure. SABIC continued to advance its digital transformation initiatives, deploying over 490 artificial intelligence models across its manufacturing operations to enhance energy efficiency, feedstock planning, and emissions reduction. The company also introduced its artificial intelligence guidelines to ensure a structured and responsible deployment of AI technologies across its global operations. Despite a resilient revenue performance, SABIC's financial results for the quarter reflected significant pressures. Quarterly sales reached SR35.57 billion, down by 0.4 percent compared to the same period last year but up 2.8 percent sequentially. The company maintained steady sales volumes, although lower average selling prices impacted profitability. Gross profit for the quarter fell to SR4.42 billion, down 38.5 percent year-over-year, while operational losses widened to SR1.88 billion. The company reported a net loss of SR4.07 billion, compared to a net income of SR2.18 billion in the same quarter last year. The loss was attributed to impairment charges and provisions of SR3.78 billion related to the closure of a cracker facility in Teesside, UK, and lower contributions from associates and joint ventures, particularly in Europe. SABIC incurred a SR517 million increase in finance costs driven by the fair valuation of derivative equity instruments and a SR284 million zakat expense. For the first half of 2025, SABIC's revenue grew by 3 percent year-over-year to SR70.16 billion, while net losses reached SR5.28 billion, compared to a net profit of SR2.43 billion in the same period of the previous year. The company introduced adjusted financial metrics from the second quarter, reporting an adjusted earnings before interest, taxes, depreciation, and amortization of SR5.22 billion, a 40 percent increase from the previous quarter, resulting in an EBITDA margin of 15 percent. Adjusted income from operations improved to SR1.94 billion from SR0.49 billion in the first quarter, while adjusted net income reached SR0.48 billion compared to an adjusted net loss of SR0.07 billion in the prior quarter. Looking forward, SABIC reiterated its focus on long-term value creation through operational excellence, transformation, and selective growth. The company also maintained its disciplined approach to capital investment, with full-year expenditure guidance projected in the range of $3 to $3.5 billion. As of 12:25 p.m. Saudi time, SABIC's share price had declined by 1.65 percent during intraday trading.
Argaam
6 days ago
- Business
- Argaam
SABIC CEO: Teesside site has two plants; only cracker unit to shut
Saudi Basic Industries Corp.'s (SABIC) CEO Abdulrahman Al-Fageeh said the company's industrial complex in Teesside, UK, includes two facilities, an ethylene cracker and a polyethylene plant, clarifying that the shutdown decision applies only to the cracker unit. Speaking to Argaam during the Q2 2025 earnings conference, Al-Fageeh confirmed that the polyethylene plant in Teesside will remain operational, continuing to serve customers in the UK and Europe, adding that the site's financial performance will remain positive thanks to ongoing operations. He noted that SABIC's petrochemical sales reached 9.9 million metric tons in the second quarter, reflecting a 3% increase from Q1 2025, while total sales volumes stood at 11.8 million metric tons for the same quarter. Looking ahead, he said SABIC expects demand for end products to remain stable in Q3 2025 across most industrial sectors, while pointing to a notable recovery in demand for industrial solutions, electronics, and electricals, as well as personal care and healthcare segments. Al-Fageeh revealed that SABIC is currently evaluating strategic options for its subsidiary, National Industrial Gases Company (GAS), including a potential initial public offering. The review forms part of a broader strategy to focus on core operations and enhance value and competitiveness. As part of its innovation push, SABIC launched over 58 new products in the first half of 2025, reflecting its commitment to offering new industrial solutions. He added that the Petrochem expansion in Jubail is 95% complete, with a planned annual capacity of 1 million metric tons, and trial operations are set to begin in Q3 2025. Meanwhile, the SABIC Fujian project in China is progressing according to schedule, with trial operations anticipated in the second half of 2026. SABIC posted a net loss of SAR 5.28 billion in H1 2025, against a profit of SAR 2.43 billion in the prior-year period. Losses in Q2 alone amounted to SAR 4.1 billion, largely due to exceptional expenses and provisions. The company said it booked SAR 3.78 billion in impairments and asset write-downs related to the Teesside cracker closure, as part of a broader portfolio review to cut costs and enhance profitability. SABIC runs key industrial assets in Teesside, UK, centered on two main units. The first is the Olefins 6 ethylene cracker, which was shut down in Q2 2025 and is now being converted into a gas cracker to process ethane feedstock. The second is the System 18 plant, launched in 2009, which ranks among the world's largest low-density polyethylene (LDPE) lines, manufacturing around 15 different grades. The plant operates using ExxonMobil-licensed technology, with ethylene sourced from Olefins 6, and part of its output is exported through SABIC's North Tees facilities.
The National
04-05-2025
- Business
- The National
Sabic swings to surprise first-quarter loss amid macroeconomic uncertainty
Saudi Basic Industries Corporation (Sabic), the Middle East's biggest petrochemicals company, swung to a loss in the first quarter, a second quarterly drop in income in a row as feedstock prices rose amid continued global macro economic uncertainty. The company posted a net loss for the three months to end-March of 1.2 billion Saudi riyals ($320 million), compared with a net profit of 250 million riyals during the same period last year, it said on Sunday in a filing to the Tadawul stock exchange, where its shares are traded. The quarterly earnings is below analysts' estimates, who forecast a profit of 699 million riyals. Sabic also missed on revenue and earnings per share, according to Bloomberg. The company, which had also reported a net loss of 1.89 billion riyals in the final quarter of 2024, said rise in feedstock prices also dented income. Revenue during the latest quarter, however, rose by about 6 per cent annually to 34.6 billion riyals on the back of 'increase in the sales volume partially offset by lower average selling prices', the company said. During the first quarter, 'the global gross domestic product growth rate was 2.97 per cent, reflecting continuing macroeconomic uncertainties,' Abdulrahman Al Fageeh, chief executive of Sabic, said. 'The manufacturing Purchasing Managers' Index (PMI) growth remained weak throughout the quarter, indicating business pessimism.' The global economy is facing headwinds as President Donald Trump's push to put heavy tariffs on trading partners across the globe stokes fear of a full-blown trade war. The disruption in global trade will severely dent economic growth, with some analysts even projecting a global recession. Last month, the International Monetary Fund lowered 2025 growth forecast for the world economy, citing a radical change in trade policies led by Mr Trump's tariff regime. Sabic said its quarterly earnings reflect the rise in feedstock prices. The petrochemicals producer said it received a notification from Saudi Aramco earlier this year to increase the feedstock prices. The financial impact of that rise in prices is estimated to be equivalent to about 1 per cent of the company's annual cost of sales. 'Looking ahead, we remain focused on long-term value creation through operational excellence, transformation, and selective growth,' Sabic said. 'We continue to manage our capital investment with discipline, projecting an expenditure range of $3.5 billion to $4 billion for 2025.' Sabic share prices were down 2.12 per cent at 3.19pm UAE time on Sunday. The company also said its projects are progressing according to plan, including the Petrokemya MTBE plant and Sabic Fujian complex. Last year, Sabic announced investments worth $6.4 billion in China's Sabic Fujian petrochemical complex as part of its expansion plans in the world's second largest economy.
