Saudi Basic Industries Corporation (Sabic), a global leader in chemicals, returned to profit in the first quarter of 2026, posting net earnings of SAR13.2 million ($3.52 million) compared with a SAR1.21 billion ($322 million) loss a year earlier.
The petrochemicals maker posted adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of SAR4.15 billion ($1.11 billion) for the three months to March 31, up 25% from the previous quarter. However, its revenue fell 6% quarter-on-quarter to SAR26.15 billion, the company said.
Adjusted net income came in at SAR816 million, compared with a loss in the previous quarter, while adjusted earnings per share stood at 0.27 riyals.
Adjusted EBIT rose to SAR1.45 billion, an increase of SAR1.01 billion from the prior quarter.
Sabic said its net position shifted to a debt of 2.77 billion riyals at the end of March, from a net cash position of SAR3.61 billion at the end of 2025.
On the solid performance, CEO Faisal Alfaqeer said: "In Q1 we continued to make meaningful progress according to our strategic agenda of portfolio optimisation, corporate transformation, and selective growth. At the core of this progress is our unwavering commitment to operational excellence, with Environment, Health, Safety, and Security (EHSS) remaining top priorities."
"As part of our strong EHSS performance in the first quarter, we achieved a total recordable incident rate of 0.08, maintaining our best-in-class performance," he stated.
Buoyed by the results, Sabic is set to continue with the plans to divest its European petrochemicals business and its engineering thermoplastics operations in the Americas and Europe, and was advancing capital projects including the near-complete Fujian complex.
"We are following through on the two agreements announced at the start of the quarter to divest our European Petrochemicals business and our Engineering Thermoplastics business in the Americas and Europe. These decisive actions are aligned with our strategy to enhance capital allocation, strengthen Sabic’s financial resilience, and position the company for growth in profitable markets," noted Alfaqeer.
Sabic also cited progress in expanding fertiliser capacity following feedstock allocation approval, and said it had signed an agreement with a joint venture backed by the Public Investment Fund and Pirelli to manufacture tyres in Saudi Arabia.-TradeArabia News Service
