- Financial Losses: Sabic reported a loss of 1.21 billion riyals for the first quarter of 2025, compared to a profit of 250 million riyals in the same period last year. Analysts’ estimated profit was 698.9 million riyals.
- Revenue Increase: The company’s revenue rose to 34.59 billion riyals, representing a 5.8% increase from the previous year, though slightly below the estimated 35.01 billion riyals.
- Operating Loss: An operating loss of 770 million riyals was reported, contrasting a profit of 1.21 billion riyals the previous year. Analysts had expected an operating profit of 2.43 billion riyals.
- Share Performance: Loss per share stood at 0.4 riyals, compared to earnings per share of 0.080 riyals last year, with expectations at 0.26 riyals.
- EBITDA Decline: EBITDA for the quarter was 2.50 billion riyals, showing a 45% decline year-over-year.
- Negative Free Cash Flow: Sabic’s free cash flow was negative 1.35 billion riyals, down from negative 350 million riyals in the same period last year.
- Stable Sales Performance: Sales remained stable, attributed to a slight increase in production volumes for chemicals and polymers, despite a small decrease in overall sales volumes, particularly in agri-nutrients and polymers.
- Restructuring Impact: EBITDA was primarily affected by one-time restructuring costs.
- Cash Flow Factors: The lowered free cash flow was due to cyclical reduced cash from operations, restructuring costs, and capital expenditures.
- Analyst Recommendations: Current analyst ratings include 8 buys, 8 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
Analysts have given Saudi Basic Industries Corporation (SABIC) a positive long-term outlook based on their Smartkarma Smart Scores. With a top score of 5 in both Value and Dividend factors, SABIC is recognized for its strong fundamentals and attractive dividend payouts. This indicates a solid financial position and a commitment to rewarding shareholders with consistent dividends.
While SABIC received lower scores in Growth, Resilience, and Momentum factors, the company’s focus on value and dividends is seen as a key strength for investors looking for stability and income. SABIC’s diverse product range, including chemicals and steel products, further supports its long-term outlook despite somewhat moderate scores in growth, resilience, and momentum.
Summary: Saudi Basic Industries Corporation (SABIC) manufactures chemicals and steel. The Company produces methanol, ethylene, propylene, benzene, toluene, xylene, industrial gases, thermoplastic resins, polyester, melamine, urea fertilizers, and long and flat hot and cold rolled steel products.
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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