Saudi Basic Industries Corp. (SABIC) reported a net profit of SR1.54 billion ($410.6 million) in 2024, bouncing back from a SR2.77 billion loss in 2023, driven by improved operations and lower discontinued operations losses.
While revenue dipped 1% to SR139.98 billion due to lower sales volumes, the impact was offset by a 1% increase in average selling prices. Operating income surged 54% to SR5.74 billion, supported by a 16% rise in gross profit to SR25.62 billion.
SABIC CEO Abdulrahman Al-Fageeh emphasized the company’s resilience despite industry challenges, noting stable EBITDA margins and ongoing profitability. The firm’s EBITDA rose to SR19.4 billion, improving its margin to 13.9% from 13.4% in 2023.
Key Financial Highlights:
- Brand Value: Retained position as the second-most valuable global chemical brand at $4.9 billion.
- Shareholder Equity: SR156.8 billion, down 6.3% from 2023.
- Dividend Distribution: $2.72 billion announced for 2024.
Growth and Expansion Plans:
- Fujian Petrochemical Complex (China) – SR24 billion investment.
- Methyl Tertiary Butyl Ether Project (Saudi Arabia) – Expanding production.
- SABIC SK Nexlene – 40% capacity increase.
- New ULTEM resin plant in Singapore launched in 2023.
- Sustainability efforts: Electrically heated cracking furnace project with BASF and Linde.
SABIC expects global GDP growth of 2.5% in 2025, with capital expenditures projected at $3.5 billion to $4 billion.