Saudi Arabia’s leading petrochemical firms are projected to report significant year-on-year declines in net profits for the first quarter of 2025, reflecting ongoing challenges in global demand, pricing pressures, and operational headwinds across the sector.
Saudi Basic Industries Corporation , the kingdom’s flagship chemicals producer, is expected to post a 47% drop in net profit to SAR 130 million for Q1 2025, down from SAR 246 million in the same period last year. The anticipated decline follows a 62% year-on-year fall in Q1 2024 net income, attributed to lower selling prices and reduced sales volumes. SABIC’s CEO, Abdulrahman Al-Fageeh, previously warned of persistent overcapacity in the global petrochemical market, which continues to weigh on margins and profitability.
Yanbu National Petrochemical Company , a SABIC affiliate, is forecasted to report a staggering 94% year-on-year plunge in net profit to SAR 6 million for the first quarter. This sharp decline underscores the volatility in the petrochemical sector, where companies are grappling with fluctuating demand and pricing dynamics.
Similarly, Saudi International Petrochemical Company is projected to see its net earnings fall by 81% to SAR 34 million in Q1 2025, compared to SAR 182 million in the corresponding period last year. The company’s performance has been impacted by decreased product prices and sales volumes, reflecting broader industry trends.
Follow Arabian Post
Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.
