SABIC projects 2025 capex of nearly $4B, sees positive restructuring impact

Logo of Saudi Basic Industries Corporation (SABIC) 

Saudi Basic Industries Corp. (SABIC) continues to manage its capital investment with discipline, projecting capital expenditure (capex) to range between $3.5 billion and $4 billion in 2025.

In its Q1 2025 financial statement, the company emphasized its continued focus on creating long-term value through operational excellence, transformation, and systematic growth as part of its future vision.

SABIC CEO Abdulrahman Al-Fageeh stated that the company has maintained its resilience, supported by stable demand, despite the challenges faced in the market.

He added that the global GDP growth rate reached 2.97% in Q1 2025, reflecting ongoing uncertainty in the macroeconomic environment.

Al-Fageeh pointed out that the growth of the industrial purchasing managers' index (PMI) remained weak throughout the quarter, indicating an atmosphere of uncertainty within the business environment.

Additionally, the CEO noted that the company's results were impacted by non-recurring costs related to a strategic restructuring initiative. He emphasized that these efforts would have a positive long-term effect on the company by optimizing costs and enhancing operational efficiency.

He highlighted that the company’s development projects are progressing as planned, including the methyl tert-butyl ether (MTBE) production plant at Arabian Petrochemical Co. (Petrokemya) and SABIC Fujian Petrochemical Complex. Furthermore, the company has initiated trial operations at the Ibn Zahr project, which aims to enhance feedstock utilization and reduce its carbon footprint.

According to data available with Argaam,  SABIC reported a net loss of SAR 1.21 billion in Q1 2025, compared to a net profit of SAR 250 million a year earlier.