Saudi Arabia’s leading chemical company, SABIC, has recorded another unexpected quarterly loss. This marks the third straight quarter of financial setbacks for the firm. Investors and analysts had expected a profit, but the company delivered a major shortfall.
SABIC reported a net loss of 4.07 billion riyals in the latest quarter. This figure stands in sharp contrast to forecasts that suggested a gain of over 500 million riyals. The unexpected downturn came mainly from a 3.78 billion riyals impairment linked to the closure of a key cracker unit in the United Kingdom.
Additionally, the company suffered financial hits from its investment in the Swiss chemical firm Clariant. A significant drop in Clariant’s share price led to further impairment charges. These two elements severely impacted SABIC’s overall financial outcome.
Despite the loss, SABIC proposed a dividend of 1.5 riyals per share for the first half. This move aimed to reassure shareholders. However, the market responded with caution. The company’s stock opened 1.6% lower and has dropped nearly 19% since the start of the year.
To manage future risk and improve focus, SABIC is reviewing its business portfolio. The company is considering strategic options for its National Industrial Gases Company. One of the main proposals under review includes a potential initial public offering (IPO).
According to company officials, the IPO plan fits SABIC’s broader strategy of portfolio optimization. They believe this approach will enhance financial performance and deliver greater value to shareholders. By focusing on core areas, SABIC hopes to adapt better to global industry conditions.
The chemicals sector has been under pressure from declining demand worldwide. SABIC’s continued losses reflect this broader slowdown. Therefore, the company’s restructuring efforts come at a critical moment.
Saudi Arabia views SABIC as a pillar of its industrial sector. Any shifts in SABIC’s performance can influence the national economy. As part of the Aramco group, SABIC carries strategic weight in both regional and international markets.
Going forward, SABIC plans to improve efficiency and explore new growth channels. Through cost controls and asset optimization, the firm aims to recover stability. Investors will watch closely as these plans unfold in the months ahead.
