Saudi chemical producer Sabic breaks quarterly loss streak with third-quarter profit
Sabic, the Middle East's largest petrochemical company, reported a net profit of 435 million riyals ($116 million) in Q3 2025, recovering from three consecutive quarterly losses. Despite a 56% annual profit decline and a 7% drop in revenue due to squeezed margins and lower selling prices, Sabic's improved performance was aided by cost reductions, impairment charge reversals, and progress in restructuring efforts.
Sabic, majority-owned by Saudi Aramco, broke its recent streak of quarterly losses with a Q3 2025 net profit of 435 million riyals ($116 million), compared to a 4.1 billion riyal loss in the prior quarter, according to its Tadawul stock exchange filing. However, the profit was 56% lower year-on-year, and revenue fell nearly 7% annually to 34.3 billion riyals, reflecting the impact of lower average selling prices and sales volume amid ongoing industry overcapacity. CEO Abdulrahman Al Fageeh cited a moderately improving macroeconomic environment but noted persistent margin pressure and low utilization rates in petrochemicals. The quarterly profit improvement benefited from reversals of previous impairments and provisions, cost reductions, and better results from joint ventures. Sabic’s restructuring efforts yielded $300 million in realized value during 2025, progressing toward its 2030 target of $3 billion in recurring EBITDA. The company confirmed full-year capital expenditure guidance between $3 billion and $3.5 billion. Fitch Ratings affirmed Sabic’s credit rating at 'A+' with a stable outlook, highlighting its cost leadership and conservative financial profile. Operational milestones include early start-up of the MTBE project in Saudi Arabia and 87% completion of the Fujian complex in China. Sabic remains confident in its ability to manage market volatility and create long-term shareholder value despite industry challenges.
