RIYADH: Saudi Basic Industries Corp. returned to profitability in the third quarter, reporting adjusted net income of SR840 million ($220 million) as revenue and earnings improved from the previous three months.
The petrochemicals producer had posted an adjusted net loss of SR380 million in the second quarter, according to a statement. Adjusted earnings per share rose to SR0.28 from a loss of SR0.13.
Revenue increased 14 percent quarter on quarter to SR28.17 billion, while adjusted earnings before interest, taxes, depreciation and amortization climbed 40 percent to SR4.75 billion.
Adjusted earnings before interest and taxes surged 434 percent to SR2.17 billion. Net debt stood at SR3.03 billion as of Sept. 30, 2026, compared with SR 2.73 billion as of Jun.30, 2026.
The results came amid geopolitical tensions and challenging market conditions that continue to weigh on the global chemicals industry, with regional conflict adding to uncertainty across the Middle East and creating further challenges for businesses operating in the region.
SABIC’s return to net profit in the third quarter of this year underscores its financial resilience and confidence in the long-term strength of the sector.
Faisal M. Alfaqeer, CEO and executive member of SABIC’s board, said: “In the third quarter, SABIC demonstrated exceptional resilience, despite geopolitical developments and market headwinds.”
He said the company remained focused on its strategic objectives, including “portfolio optimization, transformation and selective growth,” to support long-term profitability and “value creation for shareholders,” building on its more than five-decade history.
Expansion and portfolio changes
SABIC Agri-Nutrients took a final investment decision to build a new industrial complex in Saudi Arabia with annual production capacities of 1.2 million tonnes of ammonia and 2.6 million tonnes of urea. The project is expected to increase the company’s urea production capacity by 54 percent from current levels.
SABIC has achieved SR3.56 billion of its 2030 target of SR11.3 billion in positive recurring earnings before interest, taxes, depreciation and amortization impact from its transformation efforts.
SABIC also received a Local Content Certificate for 2025 from the Local Content and Government Procurement Authority, recording a local content score of more than 61 percent. The score increased by more than 9 percent compared with 2024, with the company citing agreements supporting local industries, including a recently signed memorandum of understanding with Lenovo.
The Ministry of Energy allocated feedstock for a new methanol plant in Jubail with annual production capacity of 1.8 million tonnes, according to the statement.
SABIC also completed the sale of its Engineering Thermoplastics business in the Americas and Europe for an enterprise value of $450 million as part of its Portfolio Optimization Program.