Saudi Basic Industries Corporation (SABIC) swung to a net profit of SAR 499 million in the third quarter of 2026, reversing a net loss of SAR 833 million in the previous quarter, the company reported on Oct. 25 in its interim financial results for the nine months ending Sept. 30, 2026.
The turnaround came on revenue of SAR 28.17 billion for the quarter, up 13.5% from SAR 24.81 billion in the second quarter, as the Riyadh-based petrochemicals group pushed sales volumes 30% higher despite what it described as ongoing geopolitical and logistical pressures.
A quarter built on volume and discipline
SABIC's gross profit for the three months rose to SAR 6.43 billion from SAR 4.35 billion in the prior quarter, a jump of nearly 48%. Operating profit reached SAR 2.06 billion, up from SAR 710 million.
The company credited the improvement to higher sales volumes and stronger results from associates and non-integral joint ventures, which added SAR 1.75 billion after an impairment on a listed European equity investment was reversed on share price appreciation.
Those gains were partly offset by SAR 1.28 billion in losses from discontinued operations, booked after the closure of the Engineering Thermoplastics business in the Americas and Europe under SABIC's portfolio optimization program, and by SAR 757 million in higher selling and distribution expenses tied to supply chain strain.
Adjusted EBITDA for the quarter came in at SAR 4.75 billion, a 40% increase from SAR 3.38 billion in the second quarter, lifting the adjusted EBITDA margin to 16.9% from 13.6%. Adjusted net income from continuing operations stood at SAR 840 million, against an adjusted net loss of SAR 380 million in the previous quarter.
Nine-month loss narrows sharply
For the first nine months of 2026, SABIC recorded a net loss of SAR 320 million, compared with a loss of SAR 4.84 billion in the same period of 2025, a reduction of more than 93%. Revenue for the period fell 10.7% to SAR 79.13 billion from SAR 88.57 billion a year earlier.
The company attributed the narrower annual loss to a SAR 3.07 billion drop in losses from discontinued operations, following the 2025 impairment and provisions linked to the cracker closure at Teesside in the United Kingdom, and to the SAR 2.43 billion improvement from associates and joint ventures. It also flagged SAR 1.07 billion in non-recurring strategic restructuring expenses recognized in the first quarter of 2025.
Total shareholders' equity, after deducting minority equity, stood at SAR 122.76 billion at the end of September, down 17.8% from SAR 149.41 billion a year earlier. Loss per share for the nine months narrowed to SAR 0.11 from SAR 1.61.
The external auditor issued an unmodified conclusion, and the company said certain prior period figures had been reclassified to conform with the current presentation. SABIC's European petrochemicals business and the Engineering Thermoplastics operations in the Americas and Europe are reported as discontinued operations under IFRS 5.
Saudi industrial weight behind the numbers
The results land at a delicate moment for the kingdom's industrial base. SABIC, majority owned by Saudi Aramco, remains one of the largest chemical manufacturers in the world and a cornerstone of the state's push to diversify revenue beyond crude exports, according to