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Saudi Petrochemical Companies Cut Losses by More than 50% in First-Half
🇸🇦 Saudi Arabia /Economy & Trade

Saudi Petrochemical Companies Cut Losses by More than 50% in First-Half

From Asharq Al-Awsat · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Saudi petrochemical companies collectively reduced their net losses by over 50% in the first half of 2026, reporting SAR 1.7 billion compared to SAR 3.4 billion a year prior.
  • Improved operating efficiency, better results from joint ventures, and lower impairment charges contributed to the reduced losses, though companies faced challenges from supply-chain disruptions and higher input costs.
  • Four companies achieved net profits, led by SABIC Agri-Nutrients, while Saudi Kayan, Tasnee, SABIC, and Advanced Petrochemical reported losses, with Saudi Kayan incurring the largest.

Saudi Arabia's nine listed petrochemical companies significantly cut their collective net losses by more than half in the first six months of 2026. These firms reported SAR 1.7 billion ($452.8 million) in net losses, a substantial drop from the SAR 3.4 billion ($908.5 million) recorded in the same period last year.

performance varied according to product mix, petrochemical feedstock costs, production and sales volumes, operating efficiency and exposure to global markets and supply-chain disruptions.

— Mohamed Hamdy OmarG. World CEO Mohamed Hamdy Omar commented on the varied performance across Saudi petrochemical companies.

The improved financial performance stemmed from several factors, including enhanced operating efficiency, stronger results from associates and joint ventures, and reduced losses linked to discontinued operations and asset impairments. However, the sector also contended with headwinds such as weaker equity investments, increased costs for some production inputs, and lower sales volumes due to persistent supply-chain disruptions.

Four companies managed to post net profits: SABIC Agri-Nutrients, Yansab, Saudi Industrial Investment Group, and Alujain. In contrast, Advanced Petrochemical, Sipchem, SABIC, Tasnee, and Saudi Kayan continued to report losses. SABIC Agri-Nutrients led the profitable group with SAR 1.6 billion, a 21.4% decrease from the previous year, attributed to lower sales volumes and supply-chain issues, partially offset by higher average selling prices.

much of the improvement reflected the non-recurrence of provisions and impairment charges rather than an equivalent recovery in underlying operations.

— Mohamed Hamdy OmarG. World CEO Mohamed Hamdy Omar explained the reasons behind SABIC's narrowed losses.

Mohamed Hamdy Omar, CEO of G. World, noted that performance varied based on product mix, feedstock costs, and operational efficiency. He pointed out that SABIC's losses narrowed significantly, but this was largely due to the non-recurrence of provisions and impairment charges. Omar anticipates a gradual, uneven recovery in the second half of the year, with global demand, energy costs, and geopolitical tensions remaining key influencing factors. He stressed that sustainable improvements in operating margins, sales volumes, and cash flow would be the true indicators of a sector-wide recovery.

sustainable improvements in operating margins, sales volumes and cash flow would provide the clearest evidence of a genuine sector recovery.

— Mohamed Hamdy OmarG. World CEO Mohamed Hamdy Omar outlined the conditions for a true sector recovery.
DistantNews Editorial

Originally published by Asharq Al-Awsat. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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