‎SABIC overcapacity squeezes margins: CEO

Saudi Basic Industries Corporation’s (SABIC) CEO Abdulrahman bin Saleh Al-Fageeh said 2025 saw a moderate improvement in macroeconomic landscape; however, excess production capacity in the petrochemicals industry continues to pressure profit margins and lower utilization rates.

In a statement commenting on the company’s financial results, Al-Fageeh said that despite these conditions, SABIC remained committed to delivering on its 2025 strategic priorities.

It continued to take decisive steps to optimize its asset portfolio, announcing the signing of two agreements to sell its European petrochemicals business and its engineering thermoplastics business in the Americas and Europe. Upon completion, the transactions are expected to strengthen SABIC’s long-term strategic positioning and support its objective of maximizing shareholder value.

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He added that SABIC also made solid progress on strategic and sustainable growth projects by taking final investment decisions on two projects.

The first is an ethylene oxide catalyst plant in Saudi Arabia, supported by the Shareek public-private partnership program. It aims to advance the localization and security of SABIC’s catalyst supply.

The second project is SABIC’s engineering thermoplastics compounding plant in China.

Both projects underscore the company’s disciplined capital investment approach and focus on value-added growth.

According to Argaam data, SABIC reported net losses of SAR 25.78 billion for 2025, compared to net profit of SAR 1.5 billion in 2024. Fourth-quarter losses reached SAR 20.94 billion.

Saudi Basic Industries Corporation’s (SABIC) CEO Abdulrahman bin Saleh Al-Fageeh said 2025 saw a moderate improvement in macroeconomic landscape; however, excess production capacity in the petrochemicals industry continues to pressure profit margins and lower utilization rates.

In a statement commenting on the company’s financial results, Al-Fageeh said that despite these conditions, SABIC remained committed to delivering on its 2025 strategic priorities.

It continued to take decisive steps to optimize its asset portfolio, announcing the signing of two agreements to sell its European petrochemicals business and its engineering thermoplastics business in the Americas and Europe. Upon completion, the transactions are expected to strengthen SABIC’s long-term strategic positioning and support its objective of maximizing shareholder value.

He added that SABIC also made solid progress on strategic and sustainable growth projects by taking final investment decisions on two projects.

The first is an ethylene oxide catalyst plant in Saudi Arabia, supported by the Shareek public-private partnership program. It aims to advance the localization and security of SABIC’s catalyst supply.

The second project is SABIC’s engineering thermoplastics compounding plant in China.

Both projects underscore the company’s disciplined capital investment approach and focus on value-added growth.

According to Argaam data, SABIC reported net losses of SAR 25.78 billion for 2025, compared to net profit of SAR 1.5 billion in 2024. Fourth-quarter losses reached SAR 20.94 billion.