On 2026-07-29 08:39:08 (Saudi Time), Saudi Basic Industries Corporation 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, SABIC's sales/revenue declined 14.338% YoY to SAR 50.96 billion from SAR 59.49 billion, driven by lower sales volumes amid ongoing supply chain and logistical challenges, partially offset by higher average selling prices. The net loss attributable to shareholders improved significantly by 84.469% YoY to SAR 0.82 billion from SAR 5.28 billion, primarily due to lower losses from discontinued operations of SAR 4.06 billion (related to impairment charges and provisions for the Teesside cracker closure in the UK recorded in H1 2025), the absence of SAR 1.07 billion in non-recurring strategic restructuring expenses recognized in Q1 2025, and improved contributions from associates and non-integral joint ventures of SAR 810 million stemming from non-cash impairment charges on a European equity investment in Q2 2025. These favorable factors were partially offset by a SAR 1.79 billion decline in gross profit, mainly attributable to the lower revenue base.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 5.124% to SAR 24.81 billion in Q2 2026 from SAR 26.15 billion in Q1 2026, as lower sales volumes outweighed the benefit of higher average selling prices amid ongoing supply chain and logistical challenges. The company swung to a net loss attributable to shareholders of SAR 833 million from a net profit of SAR 13.2 million in the prior quarter, primarily driven by a SAR 775 million reduction in gross profit resulting from the lower revenue. Adjusted EBITDA also fell 18% QoQ to SAR 3.38 billion (margin: 13.6%) from SAR 4.15 billion (margin: 15.9%), while adjusted EBIT dropped sharply to SAR 0.41 billion from SAR 1.45 billion, and adjusted net income from continuing operations swung to a loss of SAR 0.38 billion from a profit of SAR 0.82 billion in Q1 2026.

Other Items

The external auditor issued an unmodified conclusion on SABIC's interim financial statements for the six months ended 30 June 2026, with no additional comments, reservations, or qualifications noted. Total shareholders' equity (after deducting minority equity) stood at SAR 123.53 billion as of 30 June 2026, compared to SAR 153.88 billion in the same period of the prior year, a decline of 19.723%. Total comprehensive income attributable to shareholders was SAR -0.69 billion for the current period versus SAR -2.48 billion in the prior-year period, a change of -72.177%. Loss per share for the current period was SAR -0.27, compared to SAR -1.76 in the same period last year. The company noted that certain prior period figures have been reclassified to conform with the current period presentation, and that results of SABIC's European Petrochemicals business and Engineering Thermoplastics business in the Americas and Europe are reported as discontinued operations in accordance with IFRS 5. No material uncertainty, going concern risk, debt default, or accumulated loss percentage of capital was disclosed in the announcement.

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