Sabic returns to profit in third quarter as revenue rises despite regional conflict

Saudi Basic Industries Corporation (Sabic), the Middle East's largest petrochemicals company, turned profitable in the third quarter as earnings rose and performance improved, despite challenging market conditions. The company reported a net profit of 500 million Saudi riyals ($133 million) for the three months ending September, a 16.3% increase from the same period last year.

This marked a turnaround after a net loss of 833 million riyals in the previous quarter due to regional conflict. Revenue for the quarter grew by 14%, reaching 28.17 billion riyals, though it was still about 3% below the same quarter a year earlier. Adjusted EBITDA rose by 40% to 4.75 billion riyals, while adjusted net income rebounded to 840 million riyals, reversing a loss of 380 million riyals in the prior quarter.

Sabic CEO Faisal M Alfaqeer highlighted the company's resilience, attributing the success to a clear vision and focus on strategic objectives like portfolio optimization and selective growth. The company's strong performance comes amid heightened security risks for Saudi Arabia's energy industry, with missile and drone attacks targeting the kingdom's oil and petrochemical infrastructure during the ongoing regional conflict.

Sabic has a significant presence in Dhahran, including its advanced research and innovation centers. Recently, a Houthi missile attack damaged Saudi Aramco's headquarters in Dhahran, causing a fire in an administrative building. Aramco, which owns a 70% stake in Sabic, has been a target of such attacks. For the first nine months of 2026, Sabic reduced its net loss to 320 million riyals, down from 4.84 billion riyals in the same period last year, although revenue fell nearly 11% to 79.13 billion riyals.

The company sold its engineering thermoplastics business in the Americas and Europe for $450 million during the quarter, part of efforts to streamline operations and boost long-term profitability. Additionally, Sabic's transformation program generated 3.56 billion riyals in recurring EBITDA benefits, contributing to its 2030 target of 11.3 billion riyals in recurring EBITDA.