- SABIC reported a profit of 1.54 billion riyals for the fiscal year, which is an improvement from a loss of 2.77 billion riyals last year but fell short of the 4.79 billion riyals estimate.
- Revenue slightly decreased by 1.1% year-over-year to 139.98 billion riyals, missing the estimate of 141.07 billion riyals.
- Operating profit increased significantly by 54% year-over-year to 5.74 billion riyals but did not meet the estimated 7.44 billion riyals.
- Earnings per share (EPS) were 0.51 riyals, recovering from a loss per share of 0.92 riyals last year, though lower than the expected 1.59 riyals.
- EBITDA rose by 2.4% year-over-year to 19.47 billion riyals, under the forecast of 21.45 billion riyals.
- Free cash flow significantly decreased by 56% year-over-year to 6.16 billion riyals, falling substantially short of the estimated 10.29 billion riyals.
- SABIC plans to maintain discipline in managing capital investment, expecting 2025 expenditure to be between $3.5 billion and $4 billion.
- The decrease in sales was primarily due to the chemicals sector, which was partially offset by an increase in polymer sales.
- The increase in average selling price was largely driven by polymers.
- CEO Abdulrahman Al-Fageeh highlighted that while monetary easing is aiding industry recovery, overcapacity remains a significant challenge, particularly in the polymers sector.
- Analysts’ recommendations include 10 buys, 7 holds, and 1 sell for SABIC’s stock.
A look at Saudi Basic Industries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 4 | |
| Momentum | 2 | |
| 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
Smartkarma’s Smart Scores for Saudi Basic Industries Corporation (SABIC) indicate a positive long-term outlook for the company. With top marks in Value and Dividend categories, SABIC demonstrates strong fundamentals and a commitment to rewarding its investors. Although Growth and Momentum scores are more moderate, the company still shows resilience in the face of market challenges, as evidenced by its solid score in that category. Overall, SABIC’s Smart Scores paint a picture of a stable and lucrative investment option in the chemicals and steel manufacturing sector.
Saudi Basic Industries Corporation (SABIC) is a leading manufacturer of chemicals and steel, with a diverse product range including methanol, ethylene, thermoplastic resins, and various steel products. With a stellar Value score of 5 and a perfect Dividend score of 5, SABIC stands out as a financially robust company that values its shareholders. While Growth and Momentum scores are more modest, the company’s Resilience score of 4 reflects its ability to weather market fluctuations. Investors looking for a reliable long-term investment in the chemicals and steel industry may find SABIC an appealing choice based on its Smart Scores.
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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