Saudi Basic Industries Corporation (SABIC) is likely to post a 47% drop in net profit for the first quarter of 2025. Riyad Capital’s latest report forecasts profit to fall to SAR 130 million ($34.63 million), down from SAR 246 million a year earlier.
This decline comes as the global petrochemical market faces strong headwinds. Increased output from China and low plant utilisation rates worldwide continue to weigh on the sector. New U.S. tariffs have added uncertainty to global trade.
Petrochemical Leaders Face Sharp Declines, Says Riyad Capital
Other major Saudi petrochemical firms are also set to report weaker results:
- Yanbu National Petrochemical Company (Yansab) is expected to see a 94% drop in net profit, down to SAR 6 million.
- Saudi International Petrochemical Company (Sipchem) could post SAR 34 million in profit, marking an 81% decline from last year’s SAR 182 million.
- On a positive note, SABIC Agri-Nutrients Company is forecast to grow net profit by 4% year-on-year, reaching SAR 877 million.
While revenue is expected to grow by 7% across companies under coverage, overall profits may drop 54% year-on-year. Riyad Capital attributes this to uneven margin recovery and ongoing pricing pressure across many product lines.
Fertiliser Segment Shows Strength Despite Industry Headwinds
Despite widespread profit declines, fertiliser producers appear more resilient. Riyad Capital expects higher sales and better margins in this segment. Disruptions in global urea supply and seasonal demand are helping drive growth.
“We maintain a cautious-to-negative outlook for most products,” the report noted. “Rising Chinese capacity and global under-utilisation remain key concerns. Still, recent U.S. trade policies might give Saudi exporters a chance to fill supply gaps left by American firms.”
Although the broader petrochemical industry is under pressure, Saudi fertiliser producers are well-positioned to benefit from shifting trade dynamics and ongoing demand for essential nutrients.
