Geopolitical events had no material impact in Q1: SABIC exec

Salah Al-Hareky, SABIC Executive Vice President, Corporate Finance

Geopolitical events had no material impact on Saudi Basic Industries Corp.’s (SABIC) Q1 2026 results, said Executive Vice President - Corporate Finance Salah Al-Hareky.

The company dealt efficiently and flexibly with logistical challenges, he said, adding that any material impact would be disclosed if it occurs.

In an interview with Asharq TV, Al-Hareky said that despite regional challenges, SABIC achieved a clear improvement in ongoing operations during Q1 2026, with earnings before interest, taxes, depreciation, and amortization (EBITDA) rising 36% quarter-on-quarter (QoQ) due to higher product prices and lower costs.

He added that discontinued operations related to assets planned for closure or divestment in the second half of 2026 recorded losses exceeding SAR 200 million at the EBITDA level in Q1 2026, underscoring the effectiveness of the strategic decision taken earlier this year.

The main risks facing SABIC in 2026 include geopolitical conditions, supply chain disruptions, excess production capacity for some products in China, and the pace of economic recovery, which remains a key factor in determining demand, Al-Hareky said.

He noted that demand is tied to economic growth and that the company maintains a positive long-term outlook, though this varies by region.

Asia is showing gradual signs of improvement, supporting optimism, while Europe continues to face structural and regulatory challenges.

According to Argaam data, SABIC reported a net profit of SAR 13.2 million for Q1 2026, compared to a net loss of SAR 1.2 billion a year earlier.