AI Summary
Abdulrahman Al-Fageeh, CEO of Saudi Basic Industries Corp. (SABIC)
Tariffs had no negative impact on global demand and customer preference for Saudi Basic Industries Corp.’s (SABIC) product portfolio, CEO Abdulrahman Al-Fageeh said during the Q1 2025 earnings press conference.
In response to a question by Argaam, Al-Fageeh noted that SABIC capitalized on its global presence in more than 50 countries to maintain smooth supply chain operations without disruptions despite some customer concerns about the repercussions of trade tensions.
The petrochemicals major is analyzing the impact and seeking solutions to reduce costs and effect on its business.
The CEO said that restructuring the company reflected positively in two ways; cutting fixed costs on the short, medium and long run, as well as improving performance through new job opportunities that could further enhance the company's performance.
Salah Al-Hareky, SABIC’s Executive Vice President for Corporate Finance, said the global challenges in the petroleum and petrochemical markets have prompted the company to focus on cost control and operational efficiency to ensure continuity and competitiveness.
Meanwhile, Al-Fageeh pointed out that market conditions in the end-product industries were mostly stable during Q1 2025 compared to Q4 2024, with demand holding steady across most industries. On the other hand, there was a slight improvement in the industrial solutions, electronics, electrical, personal care, and healthcare industries.
Regarding demand for the end-product industry in Q2 2025 versus Q1 2025, he said that SABIC is expected to see stable market trends across all end-product industries.
Highlighting the 12% year-on-year (YoY) increase in sales volumes to 11.5 million metric tons in Q1 2025, Al-Fageeh said this reflects the company's strong global presence and flexibility in dealing with all circumstances and challenges.
According to data available on Argaam, SABIC recorded losses of SAR 1.21 billion in Q1 2025, versus profits of SAR 250 million in Q1 2024.
Be the first to comment
Comments Analysis: