Petrochemicals Group Sabic's First-half Loss Narrows Amid Higher Selling Prices, Reduced Volumes
Saudi Basic Industries (SASE:2010), d/b/a Sabic, on Wednesday booked a smaller net loss in the first half of 2026, as higher average selling prices partially offset the impact of reduced sales volumes.The Saudi Arabia-based petrochemicals manufacturer's net loss attributable to shareholders of the issuer for the six months ended June 30 narrowed year over year to 820 million Saudi riyals from 5.28 billion riyals. The result was also attributed to lower losses from discontinued operations and improved contributions from associates and non-integral joint ventures.Revenue, on the other hand, fell over the period to 50.96 billion riyals from 59.49 billion riyals, while operational profit dropped 27% to 2.16 billion riyals amid geopolitical uncertainties, supply disruptions and increased energy prices.In terms of shareholder returns, the company's board decided to distributed a cash dividend of 1.10 riyals per share for the first half, down from the year-ago 1.50 riyals per share. The dividend will be paid out on Sept. 1 to shareholders on record as of Aug. 11."While the current market environment continues to be challenging, our strong balance sheet and disciplined approach to capital allocation enable us to remain resilient while continuing to create value for our shareholders. And with the announcement of SAR 3.3 billion (US$ 880 million) in dividends for the first half of 2026, we continue our long-standing dividend track record even as we preserve flexibility to support our strategic priorities for long-term value creation," Chief Executive Officer Faisal Mohammed Alfaqeer said in an earnings release."At the same time, our corporate Transformation Program continues to deliver recurring EBITDA improvements, realizing US$ 547 million during the first half of 2026, maintaining our track toward our cumulative US$3 billion annual target by 2030."As of early Wednesday afternoon, Sabic's shares were trading 3% lower in Riyadh.
