BCI expands locally, boosts exports to offset price declines: CEO

However, the company responded by expanding in the local market, increasing export volumes to neighboring countries and tapping new markets, including exporting of chlorine to Iraq.

In Q2 2025, the marketing and distribution subsidiary, which operates chlorine, hydrochloric acid, and water treatment chemicals plants (excluding joint ventures), continued to deliver strong performance. The unit reported an 82% growth in operating profit and a 36% increase in net income in H1 2025 compared to H1 2024.

Challenges were more evident in the joint ventures, as polyurethane sales fell by 3% and adhesives by 10% on a semi-annual basis, Al-Shaikh said. This was mainly due to pricing pressures and lower volumes sold. Nevertheless, both companies managed to improve performance in Q2 2025 compared to Q1 2025.

The basic chemicals segment’s performance was backed by stronger sales volumes, as well as exports. In addition, the scheduled maintenance shutdowns at some local plants created additional supply gaps in the market, Al-Shaikh said.

Additionally, the adhesives segment’s performance was buoyed by improved demand in the packaging and consumer goods, as the company’s products are used in both local and export markets.

Al-Shaikh expects the basic chemicals segment to maintain higher volumes and current profit margins, along with the gradual recovery in the performance of the polyurethane and adhesives businesses over the coming period.

BCI’s net profit (after minority interest) declined to SAR 1.1 million in H1 2025, compared to SAR 2.4 million in the year-earlier period, according to data available with Argaam. Q2 profit, however, reached SAR 3.6 million, a 60% annual increase.