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Saudi Basic Industries Corporation (SABIC) reported a return to profitability in the third quarter of 2026. Net profit rose to US$133 million (SAR 499 million) from US$116 million (SAR 434 million) in the same period last year, driven by higher product prices and improved returns from joint ventures and affiliated companies. Total revenue for the quarter reached US$7.51 billion (SAR 28.17 billion), an increase of 13.5 % from the second‑quarter revenue of US$6.62 billion (SAR 24.81 billion). However, revenue fell 3.1 % year‑over‑year compared with US$7.75 billion (SAR 29.08 billion) in Q3 2025. Gross profit climbed to US$1.71 billion (SAR 6.43 billion) from US$1.56 billion (SAR 5.86 billion) in the same quarter of the previous year. Operating profit was US$549 million (SAR 2.06 billion), down from US$608 million (SAR 2.28 billion) year‑on‑year. SABIC’s petrochemicals, agricultural nutrients and specialty products segments reversed a Q2 loss of US$222 million (SAR 833 million) to a Q3 profit, with gross profit increasing by US$555 million (SAR 2.08 billion). The company attributed the improvement to higher sales volumes and better performance of joint‑venture and affiliate investments. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached US$1.27 billion (SAR 4.75 billion) in Q3, up 40 % from US$901 million (SAR 3.38 billion) in Q2. The adjusted EBITDA margin improved to 16.9 % from 13.6 % in the prior quarter. Adjusted operating income was US$579 million (SAR 2.17 billion), compared with US$109 million (SAR 410 million) in Q2. Adjusted net income attributable to SABIC’s parent company was US$224 million (SAR 840 million) in Q3, versus an adjusted loss of US$101 million (SAR 380 million) in Q2. The company cited a US$153 million (SAR 575 million) increase in gross profit and a US$432 million (SAR 1.62 billion) improvement in joint‑venture and affiliate results, partly offset by US$263 million (SAR 985 million) in non‑core operating losses. These losses were linked to foreign‑exchange reclassification following the sale of thermal engineering assets in North America, South America and Europe. Selling‑and‑distribution expenses rose by US$244 million (SAR 916 million) due to ongoing supply‑chain challenges. Net financial results declined by US$95 million (SAR 358 million) compared with the same period last year. For the first nine months of 2026, SABIC posted a net loss of US$85 million (SAR 320 million), a sharp improvement from the US$1.29 billion (SAR 4.84 billion) loss in the same period of 2025. Revenue for the nine‑month period fell 10.7 % to US$21.10 billion (SAR 79.13 billion) from US$23.62 billion (SAR 88.57 billion) in 2025. Gross profit declined to US$4.24 billion (SAR 15.91 billion) from US$4.57 billion (SAR 17.12 billion), and operating profit fell to US$1.13 billion (SAR 4.22 billion) from US$1.40 billion (SAR 5.25 billion). The company attributed the reduced loss to a US$819 million (SAR 3.07 billion) decline in non‑core operating losses and a US$648 million (SAR 2.43 billion) improvement in joint‑venture and affiliate results. One‑off costs recorded in Q1 2025 related to a restructuring initiative raised the comparative base for the previous year. Selling‑and‑distribution costs increased by US$333 million (SAR 1.25 billion), while a US$323 million (SAR 1.21 billion) drop in gross profit reflected lower sales volumes. SABIC emphasized its focus on operational efficiency, portfolio optimization and disciplined growth, while maintaining operational flexibility amid geopolitical and logistical challenges. The company noted that higher product prices helped mitigate the impact of lower sales volumes, and that supply‑chain resilience supported operations. Cash flow from operating activities after capital expenditures was US$1.50 billion (SAR 5.61 billion) for the first nine months of 2026, up from US$1.05 billion (SAR 3.94 billion) in the same period of 2025. SABIC expects capital expenditures for the year to range between US$3 billion and US$3.3 billion, as it continues to invest in core businesses and growth projects while exercising capital discipline. Article source: Al Awsat | Image credit: Al Awsat
Saudi Basic Industries Corporation (SABIC) reported a return to profitability in the third quarter of 2026. Net profit rose to US$133 million (SAR 499 million) from US$116 million (SAR 434 million) in the same period last year, driven by higher product prices and improved returns from joint ventures and affiliated companies. Total revenue for the quarter reached US$7.51 billion (SAR 28.17 billion), an increase of 13.5 % from the second‑quarter revenue of US$6.62 billion (SAR 24.81 billion). However, revenue fell 3.1 % year‑over‑year compared with US$7.75 billion (SAR 29.08 billion) in Q3 2025. Gross profit climbed to US$1.71 billion (SAR 6.43 billion) from US$1.56 billion (SAR 5.86 billion) in the same quarter of the previous year. Operating profit was US$549 million (SAR 2.06 billion), down from US$608 million (SAR 2.28 billion) year‑on‑year. SABIC’s petrochemicals, agricultural nutrients and specialty products segments reversed a Q2 loss of US$222 million (SAR 833 million) to a Q3 profit, with gross profit increasing by US$555 million (SAR 2.08 billion). The company attributed the improvement to higher sales volumes and better performance of joint‑venture and affiliate investments. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached US$1.27 billion (SAR 4.75 billion) in Q3, up 40 % from US$901 million (SAR 3.38 billion) in Q2. The adjusted EBITDA margin improved to 16.9 % from 13.6 % in the prior quarter. Adjusted operating income was US$579 million (SAR 2.17 billion), compared with US$109 million (SAR 410 million) in Q2. Adjusted net income attributable to SABIC’s parent company was US$224 million (SAR 840 million) in Q3, versus an adjusted loss of US$101 million (SAR 380 million) in Q2. The company cited a US$153 million (SAR 575 million) increase in gross profit and a US$432 million (SAR 1.62 billion) improvement in joint‑venture and affiliate results, partly offset by US$263 million (SAR 985 million) in non‑core operating losses. These losses were linked to foreign‑exchange reclassification following the sale of thermal engineering assets in North America, South America and Europe. Selling‑and‑distribution expenses rose by US$244 million (SAR 916 million) due to ongoing supply‑chain challenges. Net financial results declined by US$95 million (SAR 358 million) compared with the same period last year. For the first nine months of 2026, SABIC posted a net loss of US$85 million (SAR 320 million), a sharp improvement from the US$1.29 billion (SAR 4.84 billion) loss in the same period of 2025. Revenue for the nine‑month period fell 10.7 % to US$21.10 billion (SAR 79.13 billion) from US$23.62 billion (SAR 88.57 billion) in 2025. Gross profit declined to US$4.24 billion (SAR 15.91 billion) from US$4.57 billion (SAR 17.12 billion), and operating profit fell to US$1.13 billion (SAR 4.22 billion) from US$1.40 billion (SAR 5.25 billion). The company attributed the reduced loss to a US$819 million (SAR 3.07 billion) decline in non‑core operating losses and a US$648 million (SAR 2.43 billion) improvement in joint‑venture and affiliate results. One‑off costs recorded in Q1 2025 related to a restructuring initiative raised the comparative base for the previous year. Selling‑and‑distribution costs increased by US$333 million (SAR 1.25 billion), while a US$323 million (SAR 1.21 billion) drop in gross profit reflected lower sales volumes. SABIC emphasized its focus on operational efficiency, portfolio optimization and disciplined growth, while maintaining operational flexibility amid geopolitical and logistical challenges. The company noted that higher product prices helped mitigate the impact of lower sales volumes, and that supply‑chain resilience supported operations. Cash flow from operating activities after capital expenditures was US$1.50 billion (SAR 5.61 billion) for the first nine months of 2026, up from US$1.05 billion (SAR 3.94 billion) in the same period of 2025. SABIC expects capital expenditures for the year to range between US$3 billion and US$3.3 billion, as it continues to invest in core businesses and growth projects while exercising capital discipline.
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