SABIC Posts SAR 25.78 Billion Loss for 2025 Amid Margin Compression and Business Restructuring

Riyadh | EcoPulse24

SABIC’s annual financial results for 2025 revealed a significant shift, posting a net loss of SAR 25.78 billion compared to a net profit of SAR 1.54 billion in 2024. This turnaround is attributed to large non-cash losses from strategic decisions to restructure the business portfolio and exit certain international operations. Revenue declined by 1.03% to SAR 116.53 billion, mainly due to lower average petrochemical product prices, despite increased sales volumes. Gross profit fell 17.19% to SAR 21 billion, and operating profit dropped sharply by 53.66% to SAR 4.37 billion.

The company’s equity attributable to shareholders decreased by 17.68% to SAR 128.72 billion. EPS turned to a loss of SAR 8.59 per share, versus a profit of SAR 0.51 in 2024. Losses from discontinued operations reached SAR 20.8 billion, mainly from the writedown of European petrochemical and engineering plastics assets, and the closure of the Teesside cracker unit in the UK. Deferred tax assets of SAR 2.1 billion were also derecognized, and further provisions and impairments totaled SAR 3.8 billion.

SABIC’s restructuring aims to redirect capital toward higher-growth and higher-margin activities, improving operational efficiency and free cash flow. Despite the losses, the Board approved an interim cash dividend of SAR 4.5 billion (SAR 1.50 per share) for H2 2025, with eligibility set for March 8, 2026, and payment on March 31, 2026. Dividends for non-resident investors are subject to a 5% withholding tax, unless exempted.

The Board also announced the retirement of CEO Abdulrahman Al-Fageeh, effective March 31, 2026, with Dr. Faisal Al-Faqeer appointed as the new CEO from April 1, 2026. Dr. Al-Faqeer brings extensive experience from the refining and petrochemical sectors, most recently as Senior Vice President for Liquids-to-Chemicals at Saudi Aramco. These changes underscore SABIC’s ongoing focus on portfolio optimization and operational excellence amid challenging global market conditions.

EcoPulse24 Analysis:
SABIC’s 2025 results mark a transitional phase, with restructuring and asset divestments resulting in substantial accounting losses. However, these moves align with a strategic shift to higher-return activities. The results also highlight SABIC’s exposure to volatile global petrochemical cycles, linking performance to fluctuating energy and raw material markets and global industrial demand.