Sabic to invest $4bn despite first-quarter losses

Saudi Basic Industries Corporation, whic is 70 percent owned by Saudi Aramco, swung to a loss in the first quarter of 2025 but intends to push ahead with a capital expenditure plan worth up to $4 billion.

The petrochemicals giant, which trades on the Saudi stock exchange, reported a net loss of SAR1.2 billion ($320 million) in the three months ended March 31, 2025, against a net profit of SAR250 million a year ago.

Losses were as a result of a SAR1 billion fall in gross profit, driven by higher feedstock prices and an increase in other operating expenses arising from non-recurring costs of more than SAR1 billion related to a restructuring initiative, the company said in a statement.

Annual revenue rose by 6 percent to SAR34.59 billion during the three-month period, supported by higher sales volumes. However, the company reported lower average selling prices.

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“Our growth projects are progressing according to plan, including the Petrokemya MTBE plant and Sabic Fujian complex,” said CEO Abdulrahman Al Fageeh.

Additionally, the company commissioned the Ibn Zahr LTRS-1 project, which aims to enhance the utilisation of feedstock and reduce the carbon footprint, he said.

Sabic expects capex for this year to range between $3.5 and $4 billion this year, Al Fageeh said.

Profit reached SAR1.5 billion in 2024, compared with a loss of SAR2.8 billion in 2023.

Sabic’s share price was SAR59.60 on Monday morning, down around 11 percent since the start of the year.