Saudi chemicals heavyweight Saudi Basic Industries Corporation opened the year on a cautiously optimistic note, swinging back into the black after a bruising period—though the recovery comes with visible strains beneath the surface.
For the first quarter, the company posted a modest net profit of SAR13.2 million, a sharp turnaround from the hefty loss recorded a year earlier. Strip away one-offs, and the picture looks sturdier: adjusted net income reached SAR816 million, with earnings per share at 0.27 riyals.
Operationally, momentum picked up. Adjusted EBITDA climbed to SAR4.15 billion, marking a 25% rise from the previous quarter, while EBIT surged to SAR1.45 billion. Yet, this rebound wasn’t mirrored in top-line performance—revenue slipped 6% sequentially to SAR26.15 billion, hinting at softer market conditions or pricing pressures.
The balance sheet, too, tells a shifting story. What was once a comfortable cash cushion at the end of 2025 has flipped into a net debt position of SAR2.77 billion by March, underscoring the cost of ongoing transformation and investment.
At the helm, CEO Faisal Alfaqeer framed the quarter as one of steady strategic execution. The company continues to streamline its portfolio, push internal restructuring, and chase targeted growth—all while maintaining a tight grip on safety and operational discipline. Its safety metrics, notably, remained among the strongest in the industry.
Behind the scenes, SABIC is actively reshaping its global footprint. Plans are advancing to exit parts of its European petrochemicals business and its engineering thermoplastics operations across Western markets. At the same time, capital is being funneled into projects like the nearly completed Fujian complex, signaling a pivot toward regions and segments with stronger long-term returns.
There’s also movement on expansion fronts: fertiliser capacity is set to grow following feedstock approvals, and a new tyre manufacturing venture—backed by the Public Investment Fund and Pirelli—adds another layer to its industrial ambitions at home.
In short, SABIC’s first quarter reads like a company in transition—profitability restored, but with restructuring, divestments, and strategic bets shaping what comes next.
