Saudi Basic Industries Corporation (Sabic) reported revenue of SAR 24.81 billion ($6.62 billion) for the second quarter of 2026, down 5 per cent compared with the previous quarter, as the company navigated geopolitical uncertainties, supply disruptions and elevated energy costs.

The company’s adjusted EBITDA declined 18 per cent quarter-on-quarter to SAR 3.38 billion ($0.90 billion), while adjusted EBIT fell 72 per cent to SAR 0.41 billion ($0.11 billion).

Sabic reported an adjusted net loss of SAR 0.38 billion ($0.10 billion), with adjusted earnings per share standing at SAR -0.13 ($-0.03).

Sabic’s net debt position remained broadly stable at SAR 2.73 billion ($0.73 billion) as of June 30, 2026, compared with SAR 2.77 billion ($0.74 billion) at the end of the first quarter.

Dr Faisal AlFaqeer, Sabic CEO and Executive Board Member, said the company maintained a resilient operating performance while continuing to advance its strategic priorities.

He highlighted the company’s focus on operational excellence, portfolio optimisation, corporate transformation and selective growth initiatives to create long-term value.

As Sabic approaches its 50th anniversary, the company said it maintained strong Environment, Health, Safety and Security performance, achieving a Total Recordable Incident Rate of 0.08.

It also strengthened its innovation pipeline, introducing 32 new product solutions during the first half of 2026.

Sabic announced a memorandum of understanding with Saudi Arabia’s first electric vehicle brand, CEER, to collaborate on innovative solutions and support localisation efforts.

The company also confirmed SAR 3.3 billion ($880 million) in dividends for the first half of 2026, maintaining its long-standing dividend record.

The company’s Transformation Programme delivered $547 million in recurring EBITDA improvements during the first half of the year, keeping it on track toward its $3 billion annual target by 2030.

Sabic said its Portfolio-Optimisation Programme is progressing, with the planned divestment of its European Petrochemicals business and Engineering Thermoplastics businesses in the Americas and Europe advancing toward completion.

The company has also agreed key terms to combine its Sabtank and Chemtank equity stakes through a share exchange, pending regulatory approvals.

Despite disruptions to global trade flows, Sabic said its supply chain adapted effectively, with polymer shipments from Saudi Arabia’s east to west coast more than doubling.

The company also completed its first urea shipment via the west coast, strengthening its global supply network.

Strategic growth projects remain on schedule, including the Sabic Fujian Petrochemical Complex in China, which is expected to start up in the fourth quarter of 2026.

Sabic also achieved commercial production at its one-million-ton MTBE plant in Saudi Arabia and signed a Project Development Agreement with Rongsheng Petrochemical to support growth in advanced chemical materials.

Sabic said it will continue prioritising disciplined capital allocation, operational excellence and strategic investments to enhance shareholder returns and deliver sustainable long-term value. -OGN/TradeArabia News Service