Latest news with #SaudiBasicIndustriesCorporation
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) (
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.
Zawya
23-04-2025
- Business
- Zawya
Saudi EXIM provides $9bln in credit facilities in 2024, up 103.2% in a year
Riyadh -- The Saudi Export-Import Bank (Saudi EXIM) achieved a significant advancement in the credit facilities offered during 2024, amounting to a total of SAR33.53 billion, up by 103.2% from SAR16.5 billion in 2023. Through these efforts, the bank aims to enhance the growth of Saudi non-oil exports and strengthen their competitiveness in global markets, marking a continuous upward trend in credit facilitation since the bank's establishment in 2020. In 2024, the bank's contribution of credit facilities for Saudi non-oil exports amounted to 7.66%, financing and insuring the export of Saudi non-oil products and services. By the end of the year, the total amount disbursed for export financing applications reached SAR11.96 billion, reflecting a 70% increase from SAR7.03 billion in 2023. Meanwhile, the total value of exports covered by credit insurance reached SAR21.57 billion, up 127% from SAR9.5 billion in the previous year. To boost collaboration with global institutions, Saudi EXIM signed 50 agreements and memoranda of understanding (MoUs) in 2024, including the letter of credit insurance agreement with the Saudi Basic Industries Corporation (SABIC), the largest documentary credit insurance policy in the Middle East. The bank also entered into a US$300 million credit facility agreement with Glencore and signed an MoU with the Export-Import Bank of the United States (EXIM). Furthermore, the bank hosted the Berne Union Country Risk Specialists Meeting 2024 and launched the Kingdom's first Graduate Development Program for Export Insurance, concluding with employment. Saudi EXIM, affiliated with the National Development Fund (NDF), is dedicated to enabling the growth of Saudi non-oil exports by closing financing gaps and mitigating export risks, thereby contributing to the growth of the non-oil economy in line with Vision 2030.
Zawya
11-04-2025
- Business
- Zawya
SABIC profit forecast to drop 47% in Q1 2025, says Riyad Capital
Saudi Basic Industries Corporation's (SABIC) net profit is expected to fall 47% year-on-year (YoY) to 130 million Saudi riyals ($34.63 million) in Q1 2025 compared to SAR 246 million in Q1 2024, Riyad Capital said in its latest earnings preview. Yanbu National Petrochemical Company (Yansab) is predicted to report a 94% YoY drop in net profit to SAR 6 million in Q1 2025. The net earnings of Saudi International Petrochemical Company (Sipchem) are seen to fall by 81% to SAR 34 million in Q1 2025 from SAR 182 million in the same period last year. SABIC Agri-Nutrients Company will see a net profit rise of 4 percent YoY to SAR 877 million in the first quarter, the report said. "We maintain our uncertain-to-negative outlook on most products based on increasing Chinese capacity, utilization rates being lower globally, and additional skepticism driven by the recently announced tariff related trade policies of the United States. However, since the United States is a net-exporter of Petrochemicals, this latest shakeup in global trade could present an opportunity for Saudi firms; to fill any supply gaps left in its wake," the report said. Riyad Capital expects an increase of 7% YoY in top-line performance for companies under its coverage. In addition, margins may experience some relief for some producers, but not across the board, driving profitability to decline by 54% YoY. The brokerage forecasts higher volumes, margins, and net profits for ammonia and urea producers, given the continued disruptions in the supply of urea and seasonal demand pressure supporting dynamics for fertilisers.
