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.
