"Sabic" adjusts her view of demand for petrochemicals to unexpected losses

The Saudi Basic Industries Company (Sabic) has changed the petrochemical giant to claim the petrochemicals this year after scoring a sudden loss in its second quarter profits in a row, with the continued slowdown in sales and the company’s implementation of a plan to redress its business. After entering the company in a cautious optimistic tone in 2025, Sabic at the beginning of the second quarter of this year accepted a more conservative position on the prospects for the demand for the final industries. At the beginning of the year, the company proposed an improvement of more than 1% in the demand for three main sectors, namely: public industries, electronics and electric women, personal care and healthcare, but the results of the first quarter revealed a different reality, which would score 770 million rijal in the previous quarter, and also a confronted. operational profit of 2.4 billion. Riyals. Read more: Sabic violates expectations and keeps 1.21 billion Riyale in the first quarter of 2025. These losses were powered by unexpected costs of 1.07 billion Riyals, which led to a strategic restructuring initiative. According to CEO Abdul Rahman al -Faqih, this step aims to increase operational efficiency in the long run, to achieve savings by reducing expenses and increasing organizational efficiency. Three promising sectors that were not in pressure in February suggested ‘Sabic’ that during the first quarter of public industries, electronics and electricity sectors, personal care and healthcare. However, these expectations are not reflected in a significant way on the operating performance in the first quarter, as the company recorded revenue of 34.6 billion Riyals, a slight decrease of 34.7 billion Riyal in the previous quarter, reflecting that the improvement in demand – if it was really found – was limited and unclear to compensate for other pressure. Sabic’s lecture for the second term. Stability without recovery was characterized by the future “Sabian” view of the second quarter of 2025 with some discussion, as it expected the stability of demand for most of the final industries compared to the first quarter, and these industries include: packaging, construction and construction, agriculture, consumers, transport, industrial, car, personal care, electronic and electrical care. This evaluation reflects a greater amount of realism in the face of challenges, as CEO Abdul Rahman Al -Faqih has pointed out that the continuation of the uncertainty in the world economy declared in the first quarter, while the industrial purchase managers index was under the target growth in the target, indicating its expression – the conditions of the conditions of the conditions of the conditions. Investments continue and offer the workforce program, and despite the negative operating performance, Sabic confirmed that it will continue to manage its capital investment, which is expected to stretch between $ 2025 during the year 2025, without changing its previous expectations. In its statement to the financial results, the company indicated that it would continue to focus on maximizing the value of shareholders by implementing a program to strategically improve the workforce, which is expected to deliver more than $ 90 million annually, in addition to achieving $ $ 2.7 billion through joint collaborative activities with “Saudi Aramco”. The company has also confirmed that it will continue to improve the investment business portfolio and the disciplined capital, in a way that supports its efforts to overcome the challenges facing the sector and achieve sustainable value in the long run.