Saudi Basic Industries Corp (SABIC), a key player in the Saudi chemicals market, reported a net loss of 1.21 billion riyals ($323 million) for Q1 2025.
This marks a sharp reversal from the 0.25 billion riyals profit recorded during the same period last year. The company attributed the decline to continued margin pressures, weak demand, and rising input costs.
Despite the loss, SABIC reported a 5.8% increase in quarterly revenue, reaching 34.59 billion riyals compared to 32.69 billion riyals in Q1 2024. The revenue growth, however, was not enough to offset higher costs and softer market prices.
In February, SABIC announced plans to cut operational expenses and explore new investment opportunities. The announcement followed disappointing fourth-quarter results, which fell short of market expectations.
Analysts said the entire Saudi chemicals market is under strain due to reduced global demand and volatile feedstock prices. Many firms are grappling with excess inventory and slow industrial recovery across key export regions.
SABIC noted that pricing trends across its core products remained challenging, especially in Europe and Asia. These regions faced economic headwinds and weaker-than-expected manufacturing growth.
The firm also confirmed it is working to boost efficiency across its supply chain and strengthen strategic partnerships. SABIC’s leadership remains committed to navigating short-term turbulence while focusing on long-term resilience.
The performance of SABIC, one of the largest global petrochemicals producers, serves as a barometer for the broader Saudi chemicals market. Its financial health impacts regional suppliers, logistics providers, and downstream manufacturers.
Looking ahead, SABIC aims to adjust production volumes based on shifting global demand. The company also plans to accelerate innovation in specialty chemicals to diversify its revenue streams within the evolving Saudi chemicals market.
