August 3: SABIC to Announces Financial Results Amid Expectations of Continued Losses for the Second Consecutive Quarter

The Saudi Basic Industries Corporation (SABIC) is preparing to announce its financial results for the second quarter of 2025 on Sunday, August 3, at a time when analysts predict the company will continue to record losses for the second consecutive quarter.

Five research firms unanimously predicted that SABIC will record losses during the second quarter, continuing the negative performance of the previous quarter. Aljazira Capital was the most pessimistic, forecasting losses of 1.08 billion riyals, followed by Riyad Capital with estimates of 659 million riyals, then Al Rajhi Capital, which projected losses of approximately 480 million riyals. Value Capital forecasts that SABIC will record losses of 368.57 million riyals, while NCB Capital was the least pessimistic, estimating losses of approximately 203 million riyals. These estimates come amid continued operational pressures on the company’s performance. The company recorded losses of SAR 1.21 billion in the first quarter of this year, compared to a profit of SAR 0.25 billion in the same quarter last year, according to the estimated financial results for the period ending March 31, 2025.

The operating loss during the first quarter amounted to SAR 0.77 billion, compared to an operating profit of SAR 1.21 billion in the same period last year. The loss per share recorded SAR 0.4, compared to a profit of SAR 0.08 in the first quarter of 2024.

According to the company’s first-quarter statement, the decrease in net profit is primarily due to a SAR 1.05 billion decline in gross profit due to higher feedstock prices, in addition to an increase in other operating expenses due to non-recurring costs associated with a strategic restructuring initiative amounting to SAR 107 billion. The company expects this initiative to contribute to cost reductions of approximately SAR 345 million annually, enhancing long-term performance efficiency.