Saudi chemical producer Sabic breaks quarterly loss streak with third-quarter profit

Profit declined 56% annually amid 'squeezed' margins

The headquarters of Sabic, the world’s fourth largest petrochemicals producer, in Riyadh. AFP

Saudi Basic Industries Corporation, the Middle East's biggest petrochemicals company, swung to profit in the third quarter of 2025, breaking a run of three consecutive quarterly losses as it navigates a protracted industry downturn.

Sabic reported net income attributable to shareholders of 435 million Saudi riyals ($116 million) for the three months to the end of September, compared with a loss of 4.1 billion riyals in the previous quarter of this year, it said in a filing on Sunday to the Tadawul stock exchange, where its shares are traded.

However, net profit was down 56 per cent on an annual basis in the third quarter, because of “squeezed” contribution margins, Sabic said.

Revenue also fell nearly 7 per cent annually to 34.3 million riyals because of a decrease in average selling prices and sales volume.

Industry overcapacity persisted in the petrochemical industry, continuing to squeeze margins and depress utilisation rates

Abdulrahman Al Fageeh,
chief executive of Sabic

The third quarter reflected “a moderately improving macroeconomic landscape. Yet, industry overcapacity persisted in the petrochemical industry, continuing to squeeze margins and depress utilisation rates”, Abdulrahman Al Fageeh, chief executive of Sabic, said.

Sabic, which is 70 per cent owned by oil major Saudi Aramco, posted three consecutive losses in quarterly profits as the chemicals industry grappled with weak demand that has affected sales.

The company said its quarterly improvement in net income in the third quarter was also due to the impact from impairment charges and provisions in the previous three-month period; lowering of costs; as well as higher results from associates and non-integral joint ventures.

The company said it has made progress this quarter with its restructuring, delivering $300 million in realised value during the year, which brings it closer to its 2030 goal of $3 billion in recurring Ebitda.

The company maintained its full-year capital expenditure guidance in the range of $3 billion to $3.5 billion for 2025.

Fitch Ratings in October affirmed Sabic's credit rating of 'A+' and a 'stable' outlook. “Sabic's ratings reflect its cost leadership, large scale, geographic diversification and very conservative financial profile,” it said in a report.

The company said its MTBE project at Petrokemya in Saudi Arabia has started its operation ahead of schedule. In China, the Sabic Fujian complex advanced to 87 per cent engineering procurement and construction completion.

Looking ahead, Sabic said it is remains “confident in our ability to navigate market volatility and unlock long-term value for our shareholders”.