Prime Highlights- 

• SABIC returned to profitability in the first quarter of 2026, posting a net profit after reporting a loss in the same period last year.  

• The company’s recovery was supported by cost control, restructuring efforts, and improved operational performance. 

Key Facts- 

• SABIC posted a net profit of SR13.2 million, compared with a SR1.21 billion loss a year earlier.  

• Revenue stood at SR26.15 billion, reflecting a decline of 10.65% year-on-year, driven by lower sales volumes and prices. 

Background- 

Saudi Basic Industries Corp. (SABIC) has returned to profitability in the first quarter of 2026, supported by strong cost control measures, restructuring efforts and improved operational performance. The company posted a net profit of SR13.2 million ($3.52 million) compared with a SR1.21 billion loss in the same period a year earlier. 

In a filing on the Saudi Exchange, the Riyadh-based chemical producer said its adjusted net income stood at SR816 million, reflecting solid cash generation from operating activities after capital expenditure.

The company credited the return to profit to lower operating expenses, effective cost management and ongoing restructuring initiatives. SABIC continues to strengthen capital allocation and improve its financial position through strategic asset sales and portfolio adjustments.

SABIC reported stronger operational performance during the quarter. Earnings before interest, taxes, depreciation, and amortization rose 36% compared with the previous quarter, reaching SR4.15 billion. Adjusted earnings per share stood at SR0.27.

Free cash flow improved on an operational basis and stood at SR270 million, supported by active working capital management.

The company continues to advance its long-term strategy focused on portfolio optimization, selective growth and corporate transformation. It also reported strong progress on capital projects, including the SABIC Fujian project, which is now around 98% complete.

SABIC is also moving ahead with major divestment plans, including the sale of its European petrochemicals business for $500 million and engineering thermoplastics operations in the Americas and Europe for $450 million, strengthening its focus on core and profitable segments.

SABIC’s CEO said these steps reinforce financial resilience and improve capital efficiency while supporting growth in high-value markets. The company remains majority-owned by Saudi Aramco and continues to rank among the world’s largest petrochemical producers.