SABIC Reports 2.6% Revenue Growth in First Half of 2025, But Suffers a Net Loss
Saudi Basic Industries Corporation (SABIC) announced that its revenue grew by 2.6% in the first half of 2025, reaching $18.7 billion (SAR 70.16 billion). This is up from $18.2 billion (SAR 68.4 billion) in the same period last year.
First Half Highlights
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The growth was mainly due to higher sales, although prices were lower.
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SABIC also earned $230 million (SAR 863 million) from licensing and engineering services.
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Despite more revenue, the company reported a net loss of $1.4 billion (SAR 5.28 billion). Last year, it had made a profit of $647.8 million (SAR 2.43 billion).
Reason for the Loss
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SABIC had to write off $1 billion (SAR 3.78 billion) after closing a unit at its Teesside plant in the UK.
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It also spent $285 million (SAR 1.07 billion) on a restructuring plan in the first quarter.
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Another $285 million (SAR 1.07 billion) loss came from its partners in Europe due to weak financial performance there.
Second Quarter Results
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Revenue stayed almost the same at $9.5 billion (SAR 35.57 billion), down just 0.4% from Q2 2024.
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Again, strong sales were hurt by lower prices.
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The company lost $1.1 billion (SAR 4.07 billion) this quarter, compared to a profit of $581.2 million (SAR 2.18 billion) last year.
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The loss was mostly due to the UK plant closure and continued problems with European investments.
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Finance costs increased by $138 million (SAR 517 million), and SABIC also paid a zakat expense of $75.7 million (SAR 284 million). Last year, they had a tax benefit instead.
Other Updates
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Compared to the first quarter, Q2 revenue rose 3% thanks to higher sales.
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However, net losses increased from $322.6 million (SAR 1.21 billion) in Q1.
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SABIC started reporting “adjusted” financial results, excluding unusual costs.
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Adjusted earnings (before tax and other items) jumped 40% to $1.4 billion (SAR 5.22 billion), with a profit margin increase from 11% to 15%.
Dividends
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SABIC’s board approved a cash dividend of $1.2 billion (SAR 4.5 billion) for the first half of 2025.
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This is $0.30 (SAR 1.5) per share for 3 billion shares, to be paid on August 19, 2025.
Published: 4th August 2025
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