On 2026-08-04 15:42:47 (Saudi Time), Basic Chemical Industries Co. announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales increased by 8.512% YoY to SAR 379.86 million (from SAR 350.06 million), driven primarily by higher Basic Chemicals sales (+SAR 19.5 million, +17.5%) on improved selling prices (+15%) and volume growth (+2.1%), increased Adhesives sales (+SAR 11.5 million, +9.2%), and higher Industrial Chemicals sales (+SAR 0.76 million, +6.6%), partially offset by declines in Water Treatment Chemicals and Polymers. Net profit surged by 1,999.082% YoY to SAR 22.88 million (from SAR 1.09 million), primarily driven by a SAR 25.7 million increase in gross profit (+39.6%) resulting from higher revenues with only a modest SAR 4.1 million rise in cost of sales, a one-time gain of SAR 11.46 million from the disposal of property, plant and equipment, and a SAR 2.2 million decrease in Zakat and income tax expenses, partially offset by a SAR 9.13 million increase in general and administrative expenses (+42.9%) and higher distribution and selling expenses.

Quarter-on-Quarter Performance Drivers

QoQ revenue rose 8.074% to SAR 197.3 million in Q2 2026 from SAR 182.56 million in Q1 2026, primarily driven by strong growth in Polymers sales (+SAR 12.4 million, +39.8%) and Adhesives sales (+SAR 8.4 million, +13.1%), partially offset by declines in Basic Chemicals (-SAR 2.5 million), Industrial Chemicals (-SAR 2.7 million), and Water Treatment Chemicals (-SAR 1.0 million). Net profit surged 233.333% QoQ to SAR 17.6 million from SAR 5.28 million, mainly driven by a SAR 13.5 million increase in gross profit (reflecting improved selling prices), a one-time gain of SAR 11.46 million from the disposal of property, plant and equipment, and a SAR 1.41 million decrease in Zakat and income tax expenses, partially offset by a SAR 4.68 million rise in general and administrative expenses and an adverse SAR 1.72 million swing in expected credit losses (from a SAR 0.72 million reversal in Q1 2026 to a SAR 1.00 million expense in Q2 2026).

Other Items

The external auditor issued an unmodified conclusion on Basic Chemical Industries Co.'s interim financial results for the six months ended June 30, 2026, with no additional comments, reservations, or other matters noted in the auditor's report. No accumulated losses were reported for the period. Total shareholders' equity (after deducting minority equity) stood at SAR 613.07 million as of the current period, compared to SAR 590.19 million in the same period of the prior year, representing an increase of 3.876%. Earnings per share for the current period were SAR 0.83, compared to SAR 0.04 in the same period of the prior year. No material risks, going concern uncertainties, or debt covenant breaches were disclosed in the announcement.

Original announcement:

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