Saudi Gazette report

RIYADH — Saudi Basic Industries Corp. (SABIC), the Middle East’s largest petrochemicals and fertilizers producer, reported a net loss of SR5.28 billion ($1.41 billion) for the first half of 2025, compared with a profit of SR2.43 billion in the same period last year.

The company attributed the loss mainly to a SR3.78 billion impairment charge tied to the closure of its Teesside cracker unit in the United Kingdom during the second quarter, part of a portfolio review aimed at cutting costs and improving profitability.

Additional factors included SR1.07 billion in one-off restructuring costs, a SR1.07 billion drop in income from non-integrated joint ventures and associates — largely due to asset write-downs in Europe — and a SR694 million zakat expense, compared with a SR214 million non-cash gain a year earlier.

H1 revenues rose 3% year-on-year to SR70.16 billion, driven by higher sales volumes despite lower average selling prices. The figure included SR863 million from licensing and engineering services.

For the second quarter, SABIC reported losses versus a profit in the year-ago period, citing the Teesside impairment, a SR1.02 billion decline in earnings from joint ventures and associates, a SR517 million increase in equity derivative costs from revaluation, and zakat expenses of SR284 million, compared with a SR545 million non-cash gain in Q2 2024. Quarterly revenues were stable at SR35.57 billion.

Compared to the first quarter, the second-quarter loss widened on the back of the Teesside impairment, an SR838 million drop in JV and associate results, and a SR455 million increase in equity derivative costs. Revenues rose 3% from the previous quarter.

Shareholders’ equity, excluding minority interests, stood at SR153.88 billion at the end of the period, down from SR163.91 billion a year earlier.

SABIC said it has adopted adjusted financial indicators from Q2 2025 to strip out non-recurring items and provide a clearer view of operational performance.

The company also restated certain 2024 opening balances to reflect adjustments to its investment in Marafiq, a 17.5% associate, with no impact on income statements.

The company reiterated it is still evaluating strategic options for its subsidiary, National Industrial Gases Co. (GAS), including a potential IPO, subject to regulatory approvals and market conditions.