Saudi Basic Industries Corporation (SABIC) reported a net profit of about $133 million (SAR 499 million) for the third quarter of 2026, a 16.3% increase from $116 million (SAR 434 million) a year earlier. The result exceeded the average analyst forecast of $63.55 million (SAR 238.3 million) by 109%.
In a statement to the Saudi Exchange on Sunday, SABIC attributed the growth mainly to a roughly $153 million (SAR 575 million) rise in gross profit, supported by higher product selling prices. Improved results from non-integrated joint ventures and associates added $432 million (SAR 1.62 billion), following the reversal of a decline in the value of listed equity investments in Europe after a rise in the share price.
The quarter’s results were nonetheless weighed down by $263 million (SAR 985 million) in losses from discontinued operations, linked to the reclassification of foreign-currency differences from equity to the income statement. This followed SABIC’s completion of the sale of its specialty thermoplastics business in North America, South America and Europe under its portfolio-optimization program.
Selling and distribution expenses increased by $244 million (SAR 916 million) amid ongoing supply-chain challenges. Net financial results also fell by about $95 million (SAR 358 million), reflecting the impact of the fair valuation of derivative instruments in equity during the comparable period last year.
Compared with the second quarter of 2026, SABIC swung from a net loss of $222 million (SAR 833 million) to a net profit of $133 million (SAR 499 million).
Quarterly Revenue
SABIC’s third-quarter revenue reached $7.51 billion (SAR 28.17 billion), down from $7.75 billion (SAR 29.08 billion) in the same quarter last year.
The company said supply-chain resilience enabled it to benefit from higher selling prices, limiting the impact of lower sales volumes. It added that the results reflected its operational discipline and business flexibility despite continued geopolitical and logistical challenges.
Nine-Month Loss Narrows
For the first nine months of 2026, SABIC’s loss narrowed to $85 million (SAR 320 million), from $1.29 billion (SAR 4.84 billion) in the same period of 2025.
The improvement was driven mainly by an $819 million (SAR 3.07 billion) reduction in losses from discontinued operations. The comparable period of 2025 had included provisions and asset-impairment charges related to the closure of the cracker unit at SABIC’s Teesside plant in the United Kingdom.
Results from non-integrated joint ventures and associates improved by $648 million (SAR 2.43 billion), supported by the reversal of a decline in the value of listed equity investments in Europe following a rise in the share price.
SABIC also noted that the first nine months of 2025 included $285 million (SAR 1.07 billion) in non-recurring costs related to a strategic restructuring initiative.
Nine-Month Revenue
Revenue for the first nine months of 2026 totaled $21.10 billion (SAR 79.13 billion), compared with $23.62 billion (SAR 88.57 billion) in the same period last year.
SABIC said supply-chain resilience allowed it to capitalize on higher product selling prices, easing the impact of lower sales volumes. The company added that the results demonstrated its ability to maintain strong operations and business flexibility in an environment still shaped by geopolitical and logistical challenges.
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