By Fatima Al-Kashef

Sahara International Petrochemical Company (Sipchem), listed on the Saudi main market “Tadawul”, saw its losses widen during the second quarter of 2026, with a decline in sales volumes due to supply chain challenges, despite an increase in the average selling prices of its products, according to its results announced on “Tadawul” on Wednesday.

Business results figures

The net loss attributable to shareholders was SAR 591.9 million ($158 million) during the second quarter, up 250% year-on-year, compared to SAR 169.2 million for the same period last year.

This came as revenues fell 55% year-on-year to 860.9 million riyals, affected by a decline in sales volumes and the accumulation of unsold inventory, in addition to higher prices for raw materials used in production.

Supply chain disruptions are taking on greater weight for Sipchem, which relies heavily on foreign markets to sell its products, at a time when the war in the Middle East has disrupted shipping through the Gulf and the Strait of Hormuz since it broke out at the end of February, and prompted global shipping lines to suspend bookings to and from Jubail, where the company’s factories and export outlets are concentrated.

The company sells its products to more than 100 countries worldwide and has more than 20 subsidiaries.

Details from the first half and last year clarify the picture further.

(According to the company's disclosures and financial statements)

SABIC recorded a net loss attributable to shareholders of SAR 807.2 million during the first half of 2026, compared to a net profit of SAR 26.1 million in the first half of 2025.

Revenues declined year-on-year by 46% to 2.09 billion riyals compared to the same period.

The company had recorded a net loss attributable to shareholders of approximately 860.5 million riyals during 2025, as a result of lower product selling prices and reduced sales volumes due to periodic maintenance work in some subsidiaries, in addition to higher prices for some raw materials used in production.

Markets outside Saudi Arabia and sales between SABIC companies represent about 83% of sales volumes, distributed between 62.4% for foreign markets and 20.6% sales between subsidiaries, compared to 17% for the Saudi market.

Asia is the company’s largest overseas market, accounting for 20.8% of total sales volume.

(Prepared by: Fatima Al-Kashef, Edited by: Yasmin Saleh, Contact: zawya.arabic@lseg.com) #EconomicNews