SABIC CEO: We confidently move forward with our transformation journey

By: Mamdoh Almalki

Abdulrahman Al-Fageeh, CEO of the Saudi Basic Industries Corporation (SABIC), confirmed the company’s financial and operational results for the second quarter of 2025, stressing that the company continues to implement its transformation strategy and maximize added value for shareholders, despite global challenges and margin pressures.

Despite recording a net loss of SAR 4.1 billion, due to provisions related to the closure of its ethylene cracker unit in the United Kingdom and the impairment of financial assets in Europe, the company maintained its commitment to distributing dividends, announcing an interim dividend of SAR 4.5 billion for the first half of the year. This confirms its strategy to maximize shareholder returns while maintaining a strong financial position.

SABIC recorded a 3% increase in revenues to SAR 35.6 billion, while total sales volume reached 11.8 million tons, supported by a 3% increase in petrochemical sales to 9.9 million tons. In terms of operating profit, the company achieved SAR 4.9 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA), and SAR 5.2 billion excluding non-recurring items.

The company confirmed that its performance in environment, health, safety, and security continued to improve significantly, with the recordable incident rate falling to 0.07, the lowest in the past ten years.

In the context of its strategic transformation, SABIC explained that it is proceeding with its program aimed at enhancing the efficiency of its business portfolio and restructuring underperforming assets, with expectations of achieving added value of up to $3 billion annually by 2030.

The company is also continuing its industrial expansion, with the completion rate of the Petrochemya project in Jubail exceeding 95%, with trial operation expected to begin in the third quarter. Internationally, SABIC’s Fujian project in China is progressing according to plan, with operations scheduled for the second half of 2026.

As part of its digital transformation, the company revealed the launch of more than 490 AI-powered digital tools, with 42% of its manufacturing facilities adopting these technologies. It also strengthened supply chains by integrating AI solutions into sales and distribution.

The CEO concluded by emphasizing that, despite the challenges, SABIC continues on its journey of transformation and growth, based on a clear vision to create sustainable added value for its shareholders and consolidate its global position in the chemicals industry.