BCI CEO: Demand momentum to hold steady; market balance in focus

Ala Al-Shaikh, CEO of Basic Chemical Industries Co. (BCI)

Basic Chemical Industries Co. (BCI) CEO Ala Al-Shaikh said demand is expected to remain steady going forward, aligning with levels seen in terms of sales volumes, pricing, and margins during the second and third quarters of 2025.

He told Argaam that BCI is strategically balancing its domestic and international presence, in a way that maximizes profitability while keeping a solid client base.

Over the past three years, BCI has tapped more than 21 new export markets, including Iraq, according to the top executive.

Marking a milestone in its export operations, BCI began shipping liquid chlorine by sea to East Africa this month — the first such shipment in its history, Al-Shaikh stressed, adding that the core chemicals unit remained the main profit driver in the third quarter of this year, with sales up 32% from the previous quarter and 14% year-on-year (YoY).

The CEO attributed this growth to dynamic pricing, weekly sales reviews, and a 17% YoY decline in financing costs during the first nine months of 2025.

The company’s water treatment segment, however, saw lower sales after several products were reclassified and merged into the core chemicals unit, with production shifting from Dammam to Jubail.

Despite a 21% sales drop, the business division’s profitability surged sixfold, the CEO underlined, pointing to BCI’s plan to further expand into this segment.

Meanwhile, the polyurethane joint venture faced weaker demand and pricing pressures linked to the construction sector, with sales down 9% YoY for the same period.

With its Jubail and Yanbu plants operating at full capacity, BCI expects strong momentum to persist, Al-Shaikh highlighted, explaining that the board has approved a 40% capacity expansion at the Jubail plant in order to serve regional markets.

BCI’s net earnings after minority interest rose to SAR 10.9 million in the first nine months of 2025, from SAR 4.7 million a year earlier. Profit before minority interest reached SAR 27.9 million, versus SAR 30.1 million in 9M 2024.