Saudi Basic Industries Corporation (Sabic), the Middle East's biggest petrochemicals company, swung to a loss in the first quarter, a second quarterly drop in income in a row as feedstock prices rose amid continued global macro economic uncertainty.
The company posted a net loss for the three months to end-March of 1.2 billion Saudi riyals ($320 million), compared with a net profit of 250 million riyals during the same period last year, it said on Sunday in a filing to the Tadawul stock exchange, where its shares are traded.
The quarterly earnings is below analysts’ estimates, who forecast a profit of 699 million riyals. Sabic also missed on revenue and earnings per share, according to Bloomberg.
The company, which had also reported a net loss of 1.89 billion riyals in the final quarter of 2024, said rise in feedstock prices also dented income.
Revenue during the latest quarter, however, rose by about 6 per cent annually to 34.6 billion riyals on the back of “increase in the sales volume partially offset by lower average selling prices”, the company said.
During the first quarter, “the global gross domestic product growth rate was 2.97 per cent, reflecting continuing macroeconomic uncertainties,” Abdulrahman Al Fageeh, chief executive of Sabic, said.
“The manufacturing Purchasing Managers’ Index (PMI) growth remained weak throughout the quarter, indicating business pessimism.”
The global economy is facing headwinds as President Donald Trump's push to put heavy tariffs on trading partners across the globe stokes fear of a full-blown trade war. The disruption in global trade will severely dent economic growth, with some analysts even projecting a global recession.
Last month, the International Monetary Fund lowered 2025 growth forecast for the world economy, citing a radical change in trade policies led by Mr Trump's tariff regime.
Sabic said its quarterly earnings reflect the rise in feedstock prices.
The petrochemicals producer said it received a notification from Saudi Aramco earlier this year to increase the feedstock prices.
The financial impact of that rise in prices is estimated to be equivalent to about 1 per cent of the company's annual cost of sales.
“Looking ahead, we remain focused on long-term value creation through operational excellence, transformation, and selective growth,” Sabic said.
“We continue to manage our capital investment with discipline, projecting an expenditure range of $3.5 billion to $4 billion for 2025.”
Sabic share prices were down 2.12 per cent at 3.19pm UAE time on Sunday.
The company also said its projects are progressing according to plan, including the Petrokemya MTBE plant and Sabic Fujian complex.
Last year, Sabic announced investments worth $6.4 billion in China's Sabic Fujian petrochemical complex as part of its expansion plans in the world's second largest economy.
Emiratisation at work
Emiratisation was introduced in the UAE more than 10 years ago
It aims to boost the number of citizens in the workforce particularly in the private sector.
Growing the number of Emiratis in the workplace will help the UAE reduce dependence on overseas workers
The Cabinet in December last year, approved a national fund for Emirati jobseekers and guaranteed citizens working in the private sector a comparable pension
President Sheikh Khalifa has described Emiratisation as “a true measure for success”.
During the UAE’s 48th National Day, Sheikh Khalifa named education, entrepreneurship, Emiratisation and space travel among cornerstones of national development
More than 80 per cent of Emiratis work in the federal or local government as per 2017 statistics
The Emiratisation programme includes the creation of 20,000 new jobs for UAE citizens
UAE citizens will be given priority in managerial positions in the government sphere
The purpose is to raise the contribution of UAE nationals in the job market and create a diverse workforce of citizens
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The five pillars of Islam
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2. Prayer
3. Hajj
4. Shahada
5. Zakat
PROFILE OF INVYGO
Started: 2018
Founders: Eslam Hussein and Pulkit Ganjoo
Based: Dubai
Sector: Transport
Size: 9 employees
Investment: $1,275,000
Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri
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Mohammed bin Zayed Majlis
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
The biog
Name: Dr Lalia Al Helaly
Education: PhD in Sociology from Cairo
Favourite authors: Elif Shafaq and Nizar Qabbani.
Favourite music: classical Arabic music such as Um Khalthoum and Abdul Wahab,
She loves the beach and advises her clients to go for meditation.
UAE currency: the story behind the money in your pockets
The biog
Favourite film: The Notebook
Favourite book: What I know for sure by Oprah Winfrey
Favourite quote: “Social equality is the only basis of human happiness” Nelson Madela. Hometown: Emmen, The Netherlands
Favourite activities: Walking on the beach, eating at restaurants and spending time with friends
Job: Founder and Managing Director of Mawaheb from Beautiful Peopl
The biog
Age: 30
Position: Senior lab superintendent at Emirates Global Aluminium
Education: Bachelor of science in chemical engineering, post graduate degree in light metal reduction technology
Favourite part of job: The challenge, because it is challenging
Favourite quote: “Be the change you wish to see in the world,” Gandi
Global state-owned investor ranking by size
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China
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UAE
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Japan
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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THE BIO
Favourite holiday destination: Whenever I have any free time I always go back to see my family in Caltra, Galway, it’s the only place I can properly relax.
Favourite film: The Way, starring Martin Sheen. It’s about the Camino de Santiago walk from France to Spain.
Personal motto: If something’s meant for you it won’t pass you by.
Results:
Women:
1. Rhiannan Iffland (AUS) 322.95 points
2. Lysanne Richard (CAN) 285.75
3. Ellie Smart (USA) 277.70
Men:
1. Gary Hunt (GBR) 431.55
2. Constantin Popovici (ROU) 424.65
3. Oleksiy Prygorov (UKR) 392.30
Essentials
The flights
Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours.
The package
Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.
RESULT
Aston Villa 1
Samatta (41')
Manchester City 2
Aguero (20')
Rodri (30')
