Saudi Arabia's Sabic Profit Rises Despite Lower Sales Volume
By Farhan Rafid
Saudi Basic Industries Corp. reported an increase in third-quarter net profit, buoyed by higher average selling prices and gains from investments, even as regional shipping disruptions weighed on sales volumes.
Sabic, one of the world's largest petrochemical manufacturers, said Sunday that net profit rose to 499 million Saudi riyals ($133 million) from 434 million riyals in the same period a year earlier. Revenue fell to 28.17 billion riyals from 29.08 billion riyals.
The company said higher gross profit and a 1.62 billion-riyal improvement in results from associates and joint ventures, largely driven by the reversal of an impairment on its investment in Swiss chemicals maker Clariant, supported earnings. The gains were partly offset by a 916 million-riyal increase in selling and distribution expenses resulting from continued supply-chain disruptions.
The quarter was marked by the continuing U.S.-Iran conflict, which has disrupted chemical exports through the Strait of Hormuz and forced Gulf producers to seek alternative shipping routes.
S&P Global Ratings has warned that Gulf petrochemical and fertilizer producers face pressure from declining export volumes and higher logistics costs, with rising product prices unlikely to fully offset the impact. The ratings firm said company earnings would provide evidence of how effectively Saudi Arabian and U.A.E. producers have redirected exports amid disruptions in the Strait of Hormuz. Solid chemicals are generally easier to store or reroute than liquids, which require specialized transportation and storage infrastructure, it said.
Meanwhile, McKinsey said in an October analysis that petrochemical prices have largely tracked higher feedstock costs, while increased global supply and reduced Chinese imports have limited the impact of Middle Eastern shipping disruptions on chemical markets.
Write to Farhan Rafid at farhan.rafid@wsj.com
(END) Dow Jones Newswires
October 26, 2026 03:34 ET (07:34 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
4 Stocks to Buy for the Long-Term While They’re Still Undervalued
2 Undervalued Stocks to Buy With Long-Term Growth Ahead
Why This Vanguard ETF Is One of the Best
The Market May Be Too Pessimistic About This 4-Star Dividend Stock
United States