SABIC Reports Strong Financial Performance For Second Quarter Of 2025 With Increased Revenue And Income

SABIC has reported its financial outcomes for the second quarter of 2025, showing an adjusted net income of SAR0.5 billion. This marks a significant improvement from the previous quarter's adjusted net loss of SAR0.1 billion, representing an increase of SAR555 million. The company's revenue rose to SAR35.6 billion in Q2, up from SAR34.6 billion in Q1, reflecting a 3% growth.

Sales volume also saw a rise, reaching 11,779 thousand metric tons in the second quarter compared to 11,477 thousand metric tons in the first quarter, again marking a 3% increase. This growth was driven by higher sales volumes despite lower average sales prices and included revenue from licensing and engineering services.

Abdulrahman Al-Fageeh, SABIC's CEO, highlighted that the company has adopted new financial metrics starting Q2 2025. These metrics exclude non-operational and one-off incidents to better reflect operational performance and sustainable growth while adhering to financial market disclosure requirements.

Al-Fageeh emphasized SABIC’s environmental health and safety (EHSS) performance, noting a Health, Safety, and Environment (HSE) rate of 0.07 for the first half of the year. This rate is lower than global petrochemical peers and is SABIC's lowest in a decade.

The Board of Directors has approved distributing SAR4.5 billion in dividends for the first half of this year. Al-Fageeh stated this decision underscores SABIC's commitment to maximizing shareholder value and return on assets (ROA), enhancing its competitive position and investor confidence while ensuring resources for financial stability and future growth.

SABIC plans to continue reviewing and optimizing its portfolio as part of its transformation program. This includes closing its cracker in Teesside, UK, and exploring strategic options for its affiliate Gas, such as a potential IPO.

Project Developments

In line with SABIC’s growth ambitions, progress is being made on the MTBE project at Petrokemya affiliate with a capacity of one million metric tons. The Engineering, Procurement, and Construction (EPC) phase is over 95% complete with pilot commissioning set for Q3 2025.

Al-Fageeh also mentioned ongoing developments at the Fujian Petrochemical Complex in China. This flagship project is crucial for SABIC's strategic expansion in Asia.

The announcement was made during a press conference at SABIC’s headquarters in Riyadh where Al-Fageeh discussed recent developments related to company operations and activities.

With inputs from SPA