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.
(Editing by Seban Scaria seban.scaria@lseg.com )
