05/03/2026 04:52 AST
Saudi Basic Industries Corp. swung to a net loss of SR25.78 billion ($6.87 billion) in 2025, as divestment-related charges and weaker petrochemical prices weighed on earnings, even as the company generated SR116.53 billion in revenue.
The loss compares with a net profit of SR1.54 billion a year earlier, while revenue declined 1.03 percent from 2024 levels, according to a Tadawul filing
In a statement, the company attributed the slight fall in revenue to lower average selling prices across key products, partially offset by higher sales volumes.
The company's operational profit stood at SR4.37 billion in 2025, while earnings before interest, tax, depreciation and amortization amounted to SR17.88 billion.
In a statement, ?Abdulrahman Al-Fageeh, CEO of SABIC, said: "2025 reflected a moderately improving macroeconomic landscape. Yet, production overcapacity persisted in the petrochemical industry, continuing to squeeze margins and depress utilization rates."
He added: "Amid these conditions, SABIC remained focused on meeting its 2025 priorities."
Al-Fageeh, who is set to step down as SABIC's CEO at the end of March, said the company achieved a total recordable incident rate of 0.07, the lowest in SABIC's history. "This represents a 22 percent year-over-year improvement in performance across the combined areas of environment, health, safety, and security."
According to SABIC, losses from discontinued operations increased by SR20.8 billion compared to the previous year.
This was primarily attributed to reporting non-cash losses of SR15.2 billion related to the fair value assessment of the planned exit from petrochemical assets in Europe and thermoplastic engineering businesses in the Americas and Europe.
In a separate Tadawul filing, SABIC said its board approved the distribution of interim cash dividends totaling SR4.5 billion for the second half of 2025, equivalent to SR1.5 per share. The dividend will be paid on March 31 to shareholders registered as of March 8.
The second-half payout follows a similar SR4.5 billion dividend distributed for the first half of 2025, bringing the company's total shareholder distributions for the year to SR9 billion.
"We remain committed to delivering value to our shareholders, announcing the distribution of SR9 billion in dividends for the full year of 2025," added Al-Fageeh.
The CEO revealed that construction of the SABIC Fujian petrochemical complex remained on track, reaching 95.3 percent completion.
He further said that SABIC's innovation program provided market-driven solutions for customers through 148 new product introductions in 2025.
"All these achievements helped to strengthen SABIC's brand value, which surpassed $5 billion for the first time. Having grown 5.4 percent over the year, the SABIC brand is now valued at $5.19 billion," he said.
During the press conference, Al-Fageeh said SABIC has not yet been affected by geopolitical tensions in the region.
He added that the company has implemented "precautionary measures" to manage export operations and minimize any potential impacts.
He further said that demand for SABIC's products remains stable, noting that the company is a global entity with production sites spanning several continents in addition to the Kingdom.
According to its website, SABIC Asia has more than 40 offices and nearly 3,000 employees across the region, with ten manufacturing and compounding sites in China, India, Japan, South Korea, Singapore and Thailand.
With its regional hub in Houston, the company has a strong and growing presence in the Americas, operating 14 manufacturing sites across six US states as well as in Canada, Argentina, Mexico and Brazil. It also runs five research and development centers in the US, including a major Technology Center in Houston.
In Europe, SABIC is headquartered in Amsterdam and employs nearly 6,000 people. The company operates a network of sales offices and logistics hubs across the region, along with five major production sites in Geleen, Bergen op Zoom, Teesside, Gelsenkirchen and Cartagena.
SABIC also announced the appointment of Faisal Mohammed Al-Faqeer as its new CEO, effective April 1, 2026, replacing Abdulrahman Saleh Al-Fageeh.
"SABIC Board of Directors extends its sincere thanks and appreciation to Abdulrahman Saleh Al-Fageeh, who has been an instrumental figure in guiding the company through a crucial period of strategic optimization designed to ensure its long-term success and reinforce its role at the forefront of the global petrochemical industry," the company said in a Tadawul statement.
Al-Faqeer has extensive experience in the petrochemicals and refining industries. He currently serves as senior vice president of liquids-to-chemicals at Saudi Aramco.
Arab News
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