Sabic Achieves Profitability in Q3 Amidst Revenue Growth and Regional Challenges

Saudi Basic Industries Corporation (Sabic), the Middle East's largest petrochemicals firm, has reported a return to profitability in the third quarter. This positive financial performance was driven by increased revenue and improved operating results, despite navigating a complex market environment influenced by regional conflict.

The company announced in a bourse filing on Sunday that its net profit attributable to shareholders for the three months ending September reached 500 million Saudi riyals ($133 million), marking a 16.3 per cent increase compared to the same period last year. This marks a significant turnaround from the net loss of 833 million riyals recorded in the second quarter of this year, a period impacted by regional tensions.

Sabic's revenue for the third quarter saw a 14 per cent rise on a quarterly basis, totaling 28.17 billion riyals. While this represents an improvement, it remains approximately 3 per cent lower than the revenue reported in the same quarter of the previous year. The company's adjusted earnings before interest, taxes, depreciation, and amortisation (Ebitda) also showed strong growth, increasing by 40 per cent quarter-on-quarter to 4.75 billion riyals. Furthermore, adjusted net income stood at 840 million riyals, a substantial recovery from a loss of 380 million riyals in the second quarter.

Faisal M Alfaqeer, Sabic's chief executive, commented on the results, stating, “In 3Q 2026, Sabic demonstrated exceptional resilience, despite geopolitical developments and market headwinds, coupled with a clear and robust forward-looking vision and continued focus on strategic objectives, namely portfolio optimisation, transformation and selective growth, in efforts to support the company’s long-term profitability and value creation for shareholders, building on its historic journey of more than five decades.”

These results emerge against a backdrop of heightened security concerns for Saudi Arabia's energy sector, with its oil and petrochemical infrastructure facing recurrent missile and drone attacks due to the ongoing regional conflict. Sabic maintains a significant operational base in Dhahran, with a focus on its advanced research and innovation capabilities. Earlier this month, a Houthi missile attack caused damage to Saudi Aramco’s headquarters complex in Dhahran, igniting a fire in an administrative building. Saudi Aramco holds a 70 per cent stake in Sabic. These incidents have amplified concerns regarding the security of Saudi Arabia's energy assets amidst the continued disruption of regional energy markets by the Iran war.

For the cumulative first nine months of 2026, Sabic successfully narrowed its net loss to 320 million riyals, a significant reduction from the 4.84 billion riyals reported in the corresponding period last year. However, revenue for this nine-month period declined by nearly 11 per cent to 79.13 billion riyals.

In line with its strategy to streamline operations and enhance long-term profitability, Sabic reported the completion of the sale of its engineering thermoplastics business in the Americas and Europe during the third quarter. This transaction was valued at an enterprise value of $450 million. Additionally, the company's transformation programme has already generated 3.56 billion riyals in recurring Ebitda benefits, moving towards its 2030 target of 11.3 billion riyals.