Saudi Basic Industries Corporation (SABIC), a global leader in chemicals, said on Wednesday it returned to profit in the first quarter of 2026, posting net earnings of SAR13.2 million ($3.52 million) compared to a SAR1.21 billion ($322 million) loss a year earlier.
This increase is mainly attributed to a SAR1.05 billion decline in non-recurring restructuring costs, and a SAR384 million reduction in general, administrative, research and development expenses, the company said in a filing to the Saudi bourse, Tadawul, on Wednesday.
Although revenue declined 11% year-on-year to SAR26.15 billion ($6.97 billion) due to lower sales volumes, the company said it increased its operating profit by 338% to reach SAR1.45 billion ($386.6 million), mainly due to a SAR1.05 billion ($280 million) decline in operating expenses.
“In Q1 2026, we continued to make meaningful progress according to our strategic agenda of portfolio optimization, corporate transformation, and selective growth,” said SABIC CEO and executive board member Dr. Faisal Alfaqeer.
“We are following through on the two agreements announced at the start of the quarter to divest our European Petrochemicals business and our Engineering Thermoplastics business in the Americas and Europe,” he noted.
“These decisive actions are aligned with our strategy to enhance capital allocation, strengthen SABIC’s financial resilience, and position the company for growth in profitable markets,” Alfaqeer added.
At the same time, he said SABIC’s transformation journey continues to deliver performance improvements that unlock greater value for our shareholders.
“We realized $220 million at the EBITDA level on a recurring basis during the first quarter of 2026, in line with our planned improvement rate. This keeps us on track toward our cumulative 2030 annual target of $3 billion, consisting of $1.40 billion in cost excellence and $1.60 billion in value creation.”
In terms of selective growth, Alfaqeer also said the company is advancing a number of capital projects in a disciplined way. The execution of the SABIC Fujian project continues as planned, now reaching approximately 98% completion.
He noted that the Ministry of Energy’s announced feedstock-allocation approval “enables the potential expansion of our annual urea production capacity from approximately 4.8 million tons to 7.4 million tons—a 54% increase.”
SABIC has forecast a capital investment of $3.5 to $4 billion in 2026.
Alfaqeer said the company signed a strategic agreement with the Public Investment Fund–Pirelli joint venture, enabling the joint venture to manufacture 3.5 million tires annually in the Kingdom.
“This agreement supports the localization agenda of our NUSANED program, while contributing to long-term economic growth and industrial development in Saudi Arabia,” he affirmed.
