S Arabia’s SABIC swings to Q1 net loss amid higher operating costs

SINGAPORE (ICIS)–SABIC swung to a net loss of Saudi riyal (SR) 1.21 billion ($323 million) in the first quarter on the back of higher feedstock prices and operating costs, the Saudi Arabian chemicals giant said on 4 May.

in Saudi Riyal (SR) billion	Q1 2025	Q1 2024	% Change
Sales	34.59	32.69	5.8
EBITDA	2.5	4.51	-44.6
Net income	-1.21	0.25

The company reported a Q1 revenue increase driven by higher sales volumes, though this gain was partially tempered by lower average selling prices, it said in a filing on the Saudi bourse, Tadawul.

Despite this revenue growth, Q1 net profit faced pressure from a rise in other operating expenses, primarily due to a one-time SR 1.07 billion cost associated with a strategic restructuring expected to yield future cost reductions.

QUARTER ON QUARTER PERFORMANCE
SABIC’s sales volume and average selling prices were relatively stable quarter over quarter, supported by higher production volumes in the chemicals and polymers units, although this was offset by lower overall sales volumes.

In the first quarter, revenue of the petrochemicals segment was at SR31.5 billion, representing a quarter-over-quarter decrease of 1%, primarily driven by continued oversupply and weaker demand.

While methanol prices improved, monoethylene glycol (MEG) prices were flat amid higher supply and weak demand, along with polypropylene (PP).

Meanwhile, polyethylene (PE) prices were supported by global demand, but offset by additional supply.

Polycarbonate (PC) prices were lower in the first quarter, mainly due to weak demand across major markets and oversupply.

OUTLOOK
Manufacturing Purchasing Managers Index (PMI) growth remained slow over the quarter, indicating business pessimism, SABIC CEO Abdulrahman Al-Fageeh said.

“Our growth projects are progressing according to plan, including the Petrokemya MTBE plant and SABIC Fujian complex,” Al-Fageeh said.

“We are focused on driving operational excellence, advancing transformation, and pursuing selective growth, while maintaining financial discipline and delivering long-term value,” added Al-Fageeh.

SABIC projects an expenditure range of $3.5-4.0 billion for the year.

SABIC is 70%-owned by energy giant Saudi Aramco.

Thumbnail shows a SABIC production facility (Source: SABIC)

($1 = SR3.75)