Sabic reported a 15% rise in third-quarter net profit to 499 million riyals, helped by higher selling prices and investment gains, while revenue slipped on shipping disruptions.
Saudi Basic Industries Corp. (Sabic) returned to profit in the third quarter, helped by higher selling prices, even as the regional conflict and supply-chain disruption continued to weigh on its business.
Net profit rose to 499 million Saudi riyals ($133 million), compared with 434 million riyals in the same quarter a year earlier, an increase of about 15%. The company swung to a profit after reporting a net loss of 833 million riyals in the second quarter.
Revenue rose 14% from the second quarter to 28.17 billion riyals. That was still slightly below the 29.08 billion riyals recorded in the third quarter of 2025, a decline of about 3%.
Sabic said gross profit increased by 575 million riyals, mainly because of higher selling prices. Net financial results declined by 358 million riyals, mainly because of a non-cash fair-value valuation of derivative instruments recognised in the year-earlier quarter.
On an adjusted basis, net income was 840 million riyals, against an adjusted net loss of 380 million riyals in the previous quarter. Adjusted EBITDA rose 40% from the second quarter to 4.75 billion riyals.
For the first nine months of the year, Sabic narrowed its net loss to 320 million riyals from 4.84 billion riyals a year earlier, although revenue declined nearly 11% to 79.13 billion riyals.
Chief Executive Faisal Alfaqeer said in the company's results statement: "In the third quarter, SABIC demonstrated exceptional resilience, despite geopolitical developments and market headwinds.
The result came in well ahead of expectations. Maaal's average of research-firm projections pointed to a profit of about 342 million riyals, while SNB Capital had forecast a net loss of 414 million riyals.
Net debt stood at 3.03 billion riyals at the end of September, up from 2.73 billion riyals at the end of June. During the quarter, Sabic completed the sale of its engineering thermoplastics business in the Americas and Europe for an enterprise value of $450 million, part of its effort to streamline operations.
Sabic did not issue a separate outlook with the third-quarter results. Its latest guidance, given with first-half results, set 2026 capital spending at $3.5 billion to $4 billion, and its Fujian petrochemical complex in China is on track to start operations in the fourth quarter.
Sabic is one of the world's largest producers of chemicals, plastics and fertilizers, and its results are widely followed as a gauge of demand and pricing across the global petrochemical industry.
Other News
Top Stories- 1 Meta Plans Up to $95 Billion Stock Sale to Fund AI Push, Starting With $35 Billion
- 2 Audi to Build First U.S. Factory in Georgia in $4.2 Billion Investment
- 3 The London Stock Exchange Group Agrees $3.54 Billion Deal for Octus, Its Biggest Acquisition Since Refinitiv
- 4 Musk Weighs Folding Tesla Into SpaceX in What Could Be History’s Biggest Merger
Comments (0)
You must be logged in to post comments.
No comments yet. Be the first to start the conversation!