Saudi Basic Industries Corp. (SABIC) reported a net loss of 1.21 billion Saudi riyals ($322.65 million) in the first quarter of 2025, compared to a net profit of 250 million riyals during the same period last year.
The losses were caused by higher raw material prices and an increase in other operating costs, mainly due to a one-time expense of 1.07 billion riyals.
In April, Riyad Capital predicted that SABIC’s net profit would drop by 47% compared to last year, expecting it to be 130 million riyals in Q1 2025, down from 246 million riyals in Q1 2024.
However, revenue increased by 6% compared to last year, reaching 34.59 billion riyals, the same as the previous quarter. Sales were stable, helped by a slight rise in the production of chemicals and polymers. However, overall sales volumes were slightly lower, especially in the areas of agricultural nutrients and polymers.
Despite the ongoing economic challenges, SABIC showed strong performance, backed by steady demand, said CEO Abdulrahman Al-Fageeh.
“Our EBITDA for the quarter stood at SAR 2.5 billion, impacted by a strategic restructuring initiative that will positively reflect on the company’s future financial results through cost reduction and performance efficiency enhancement,” he added.
The CEO said that in 2025, SABIC will focus on improving operations, driving change, and seeking careful growth while keeping a strong focus on financial control and creating long-term value.
Compared to the previous quarter, the net loss decreased from 1.89 billion riyals in Q4 2024 due to higher profits from associates and increased finance income.
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