SABIC reports net loss of $323mln in Q1 2025
Saudi Basic Industries Corp. (SABIC) reported a net loss of 1.21 billion Saudi riyals ($322.65 million) in Q1 2025, compared to a net profit of SAR 250 million a year ago.
The losses were driven by higher feedstock prices and an increase in other operating expenses, mainly due to a non-recurring cost of SAR 1.07 billion.
In April, Riyad Capital expected SABIC's net profit to fall 47% year-on-year (YoY) to SAR 130 million in Q1 2025 compared to SAR 246 million in Q1 2024.
However, revenue rose by 6% year-on-year to SAR 34.59 billion, matching the previous quarter. Sales performance was stable, supported by slightly higher production volumes in chemicals and polymers, although overall sales volumes were marginally lower, particularly in agri-nutrients and polymers segments.
Despite the ongoing macroeconomic uncertainties, SABIC continued to demonstrate resilience, supported by stable demand, said CEO Abdulrahman Al-Fageeh.
'Our EBITDA for the quarter stood at SAR 2.5 billion, impacted by strategic restructuring initiative that will positively reflect on the company's future financial results through cost reduction and performance efficiency enhancement,' he added.
The CEO said that SABIC will focus on driving operational excellence, advancing transformation, and pursuing selective growth in 2025, while maintaining financial discipline and delivering long-term value.
Quarter-on-quarter, net loss narrowed from SAR 1.89 billion in Q4 2024, thanks to higher associate profit and finance income.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TECHx
6 hours ago
- TECHx
META's Tech Growth Surges as AI PCs Lead Market Shift
Home » Tech Market Insights » META's Tech Growth Surges as AI PCs Lead Market Shift The Middle East, Türkiye, and Africa (META) region is seeing rapid growth in its IT markets. A major driver of this progress is the rising adoption of AI PCs. CONTEXT's latest META Monthly Webinar confirms that the UAE and Saudi Arabia are leading in IT distribution sales. However, this leadership is not uniform across the region. South Africa is showing lower shares compared to the UAE and Saudi Arabia. Türkiye, on the other hand, posted exceptional growth in April, likely due to specific deals. A key highlight across all markets is the growing demand for AI-capable notebooks. This trend points to a new computing era in META. UAE: A Digital Powerhouse in AI PCs and Cloud The United Arab Emirates continues to strengthen its status as a leader in digital transformation. It has shown strong growth in IT distribution sales, both in volume and revenue, through April 2025. This performance spans across major product categories, from desktops and smartphones to servers and security software. It reflects the country's broad and deep commitment to digital progress. The successful hosting of GISEC 2025 further underscores the UAE's position in cybersecurity and technology. Adding to this momentum is the launch of GPU-as-a-Service (GPUaaS) by a UAE-based telecom and digital provider. This is a major leap in cloud services. It also strengthens the UAE's lead in AI PCs and advanced computing. The UAE's proactive approach is backed by the highest ICT spending in the META region, driving steady growth and innovation. Saudi Arabia: A Growing Tech Ecosystem with AI at Its Core Saudi Arabia is also making strong strides in technology. The country has recorded remarkable growth in notebooks and servers, two crucial categories for AI PCs. Its tech and communications sector hit $48 billion last year and is expected to exceed that in 2025. A standout development is the $10 billion partnership between AMD and HUMAIN, a new Saudi AI venture. This collaboration aims to build the world's most open and scalable AI infrastructure. It marks a major step toward embedding AI into the country's digital ecosystem. This move puts Saudi Arabia on the global map for AI leadership and is likely to accelerate the demand for AI PCs. The Rise of AI-Capable PCs: A Regional Trend A defining trend across META is the fast shift to AI PCs equipped with advanced chipsets. By April 2025, 22% of all notebooks sold in the region had an NPU (Neural Processing Unit). That's up from just 8% at the beginning of 2024. These AI PCs include Intel's Core Ultra, Apple M chips, and AMD Ryzen AI. Their growing availability is boosting market share even though end-user AI demand is still developing. The result is higher Average Selling Prices (ASP) and improved revenue for IT distributors. Another factor is the upcoming end-of-support for Windows 10 in October 2025, which is expected to trigger new PC refresh cycles across META. Market Outlook and Future Prospects for AI PCs The META region offers strong opportunities for tech growth, with AI PCs at the center of this evolution. The UAE and Saudi Arabia continue to lead through focused digital investments and rapid AI integration. As AI technologies mature and become more user-friendly, demand for AI PCs is expected to grow further. These devices are changing procurement strategies and pushing the region toward the next wave of innovation. Insights from CONTEXT's META Monthly Webinar clearly show the region is evolving fast. Strategic thinking and adaptability will be key to success. For META, the future of computing is here, and it's being shaped by AI PCs.
Arabian Post
13 hours ago
- Arabian Post
Saudi FDI Soars as Unemployment Plummets
Arabian Post Staff -Dubai Net foreign direct investment surged to SAR 22.2 billion in Q1 2025, marking a 44 per cent year‑on‑year rise, the General Authority for Statistics reported on Sunday. Though slightly down from SAR 24 billion in Q4 2024, the inflows underscore robust investor interest. Meanwhile, unemployment eased across the board, with significant gains for women and youth. Government data show inward FDI at SAR 24 billion in Q1, a 24 per cent increase year‑on‑year but a 6 per cent dip compared to late 2024. Despite this quarterly slowdown, inflows remain well above Q1 2024's SAR 19.4 billion. The rebound follows strategic efforts under Vision 2030, including high-profile giga‑projects in tourism, sports and entertainment and regulatory reforms aimed at boosting foreign investor confidence. ADVERTISEMENT Analysts caution that current FDI levels are still far short of Saudi Arabia's $100 billion annual target. Obstacles such as a complex legal environment and perceptions of the Kingdom as a capital exporter persist. The government has responded by conditioning state‑contract awards on regional headquarters being based locally, along with plans to overhaul investment laws to increase transparency. On the labour front, the overall unemployment rate for people aged 15 and above dropped to 7.8 per cent in Q1, down from 8.5 per cent in Q4 2024. Among Saudi nationals, unemployment eased to 7.6 per cent, compared to 8.4 per cent in the previous quarter; male unemployment declined from 5.1 per cent to 4.7 per cent and female unemployment from 14.3 per cent to 13 per cent. These figures follow earlier statistics showing an even lower unemployment rate among Saudi nationals: 6.3 per cent, the lowest on record, driven in part by historic falls in female joblessness, which reached 10.5 per cent. GASTAT's labour bulletin also highlighted a rise in overall participation to 68.2 per cent, up 1.8 points from Q4 2024. Within that, Saudi male participation climbed to 66.4 per cent, while female participation rose to 36.3 per cent. The youth labour market showed varied outcomes: unemployment among young Saudi women fell to 11.6 per cent, while male youth unemployment dropped to 11.6 per cent as well, even as their participation rate declined. Experts link these shifts to targeted labour reforms, including expanded digital employment platforms such as Jadarat, and programmes that encourage female workforce inclusion under Vision 2030. Economic diversification is evident in the deeper GDP breakdown. Non‑oil sectors grew by 4.2 per cent in Q1, significantly outpacing oil activity, which fell by 1.4 per cent, according to GASTAT. Government services also rose by 3.2 per cent, driving overall GDP growth of 2.7 per cent year‑on‑year. These shifts highlight the evolving composition of the economy away from hydrocarbons. The resilience in FDI and labour metrics comes amid projected fiscal pressures. Saudi Arabia is expected to run a SAR 101 billion deficit in 2025, to be funded largely through debt. Even so, credit agencies note that net public debt remains low at approximately 17 per cent of GDP, leaving room for continued borrowing. Policy-makers point to dynamic growth in private‑sector activity and infrastructure investment as evidence of broader momentum. Nonetheless, flows remain below long‑term targets, and uncertainties linger over the pace of regulatory liberalisation and investor protections. Combined, these indicators illustrate an economy in transition. FDI strength and labour market improvement reflect clear progress, especially on domestic policy fronts aligned with Vision 2030 goals. Yet government targets for transformative investment and full private‑sector integration remain distant, and persistent structural rigidities could slow advancement. Moving forward, success will hinge on deepening institutional reforms—such as streamlined licensing, improved legal frameworks, and enhanced foreign equity rights—and sustaining social policies that widen labour force inclusivity, notably among women and youth. Economic forecasts anticipate moderating oil prices and slower government expenditure later in 2025, placing even greater emphasis on private capital inflows and sustainable domestic job creation. These emerging trends offer insight into Saudi Arabia's efforts to recalibrate its economic model—balancing fiscal constraints with bold ambitions. While the pace of change remains uneven, the current data points to structural momentum that, if sustained, could reshape the Kingdom's economy over the remainder of the decade.
Gulf Today
a day ago
- Gulf Today
Saudi Arabia's net foreign direct investment falls 7% in Q1
The Saudi General Authority for Statistics reported on Sunday that Foreign Direct Investment (FDI) inflows reached SAR 22.2 billion (USD 5.9 billion) in Q1 2025, while the unemployment rate declined to 7.8%. The data indicated a 44 percent increase in FDI inflows compared to the same period last year, when it amounted to SAR 15.5 billion (USD 4.1 billion), despite a 7% decline compared to the fourth quarter of 2024, which recorded SAR 23.9 billion (USD 6.4 billion). FDI inflows into the Kingdom totaled SAR 24.0 billion (USD 6.4 billion) in Q1 2025, reflecting a 24% year-on-year increase but a 6% drop compared to Q4 2024. In the labour market, the data showed a decline in the overall unemployment rate for individuals aged 15 and older to 7.8% in Q1 2025, compared to 8.5% in Q4 2024, 3.7% males, and 18.4% females. The Authority reported Saudi unemployment falling to 7.6%, down from 8.4%, with male unemployment sliding from 5.1% to 4.7% and female easing from 14.3% to 13%. The labour force participation rate for Saudis stood at 47.6%, with 66.6% for males and 35.4% for females, while the employment-to-population ratio was 92.4%. The data showed that the majority of Saudi job seekers are in the 20-29 age group, with the highest numbers in Riyadh, Makkah, the Eastern Province, Aseer, and Qassim. WAM
