- In Q2 2025, SABIC reported a significant loss of 4.07 billion riyals compared to a profit of 2.18 billion riyals in the same quarter last year.
- This loss was unexpected as analysts had estimated a profit of 1.11 billion riyals for the quarter.
- Revenue for Q2 2025 was 35.57 billion riyals, a slight decrease of 0.4% year-over-year, but above the estimated 34.09 billion riyals.
- SABIC recorded an operating loss of 1.88 billion riyals this quarter, down from an operating profit of 2.1 billion riyals in the same period last year, against an estimate of a 1.87 billion riyals profit.
- Free cash flow for the quarter was 870 million riyals.
- For the fiscal year, SABIC has set its expenditure guidance between $3 billion and $3.5 billion.
- The CEO highlighted that excess production capacity and sub-average operating rates are putting pressure on margins due to market oversupply.
- The company announced a dividend payment of 1.5 riyals per share for the first half of the year.
- SABIC noted the impact of closing its Teesside asset and the impairment charges related to its investment in Clariant.
- Investment analysts currently rate the stock with 7 buys, 9 holds, and 2 sells.
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A look at Saudi Basic Industries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
According to Smartkarma Smart Scores, Saudi Basic Industries Corporation (SABIC) has received top marks in Value and Dividend factors, indicating strong fundamentals and income potential for investors. The company’s high scores in these areas suggest that it offers good value for money and pays out attractive dividends to its shareholders.
However, SABIC’s outlook for Growth, Resilience, and Momentum is more moderate, with scores indicating room for improvement in these areas. While SABIC manufactures a variety of chemicals and steel products, its growth potential, resilience to market fluctuations, and momentum for future performance are areas where the company could focus on to enhance its long-term prospects.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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