Latest news with #SaudiBasicIndustriesCorp
Saudi Gazette
03-08-2025
- Business
- Saudi Gazette
SABIC posts $1.41 billion loss in H1 2025 on UK plant closure, restructuring costs
Saudi Gazette report 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 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 equity, excluding minority interests, stood at SR153.88 billion at the end of the period, down from SR163.91 billion a year said it has adopted adjusted financial indicators from Q2 2025 to strip out non-recurring items and provide a clearer view of operational company also restated certain 2024 opening balances to reflect adjustments to its investment in Marafiq, a 17.5% associate, with no impact on income 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.
Mint
03-08-2025
- Business
- Mint
Saudi Chemical Giant Sabic Posts Third Straight Quarterly Loss
(Bloomberg) -- Saudi Arabia's biggest chemical company posted a third consecutive quarterly loss, missing analyst estimates for a profit, amid a prolonged industry downturn. Saudi Basic Industries Corp. reported a net loss of about 4.1 billion riyals ($1.1 billion), compared with a loss of 1.2 billion riyals in the prior period, according to a statement on Sunday. Analysts had been expecting a profit of 1.1 billion. The company attributed losses to impairment charges related to asset closures at its Teesside facility in the United Kingdom and on its investment in Clariant. It also cited an increase in financing costs. Market sentiment has remained uncertain, weighed down by ongoing global economic uncertainty and continued geopolitical tensions, Sabic said. Sabic earlier this year announced a plan to restructure the company to cut costs, as softer demand has hit earnings and shrunk margins of major chemical companies around the world. Firms have been selling assets and shuttering projects in response to the challenges. Dow Inc. reported its first quarterly loss in five years last month and said it would close three plants in Europe. LyondellBasell missed on second-quarter earnings and delayed construction on a project in Texas, while saying it remains 'cautiously optimistic' on developments to address execess capacity in Europe and revitalize the industry in Europe. Its shares fell 8% on Friday after the results. BASF SE is also selling a unit to focus on its core business while Shell Plc said recently that its chemicals business has been suffering for a while. Analysts expect Sabic to face ongoing margin pressure and weak pricing due to persistent oversupply in key petrochemical products, though its diversified portfolio and fixed-feedstock cost structure are seen as supporting margins. Sabic is considering a public listing of its industrial gases unit as part of a broader operational review. The chemical giant's shares have declined about 20% this year. The broader Saudi index has dropped by about half of that amount over the same time period. Saudi Aramco, the world's biggest oil exporter, owns a majority of Sabic and is due to report earnings on Aug. 5. More stories like this are available on
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.
Bloomberg
04-05-2025
- Business
- Bloomberg
Saudi Chemicals Giant Posts Another Surprise Earnings Loss
Saudi chemicals giant Sabic suffered a surprise loss in earnings for a second straight quarter, adding to signs the company is struggling to cope with market uncertainty and broad industry headwinds. Saudi Basic Industries Corp. posted a net loss of 1.2 billion riyals ($320 million), according to a statement on Sunday. That compares with analysts' estimates for a profit of 699 million riyals. The results reflect challenges including elevated feedstock prices and lower overall sales volumes, particularly in agri-nutrients and polymers.
Argaam
27-02-2025
- Business
- Argaam
SABIC Q4 loss contrary to estimate, stock under review: Ubhar Capital
Logo of Saudi Basic Industries Corp. (SABIC) Ubhar Capital said SABIC reported a net loss of SAR 1.89 billion in Q4 2024, mi
