Q1 2026 Saudi Basic Industries Corporation SJSC Earnings Call Transcript
Key Points
- Saudi Basic Industries Corp (SAU:2010) reported a 25% increase in adjusted EBITDA quarter-on-quarter, supported by improved pricing and disciplined cost management.
- The company achieved a 4% increase in adjusted EBITDA margin, reaching 15.9% compared to the previous quarter.
- SABIC's transformation program realized $220 million in recurring earnings impact during the quarter, progressing towards its 2030 targets.
- The SABIC Fujian project in China is nearing completion, with 98% of engineering, procurement, and construction finished, strengthening SABIC's position in Asian markets.
- SABIC received feedstock allocation approval to expand urea production capacity by up to 54%, reinforcing its leadership in the Agri-Nutrients sector.
- Revenue for the quarter stood at $7 billion, down 6% compared to the fourth quarter of the previous year, primarily due to lower sales volume.
- Sales volume declined by 13% quarter-on-quarter, attributed to geopolitical-related disruptions and planned maintenance activities.
- Cash flow from operations was $232 million, lower than the previous quarter, mainly due to higher working capital.
- Industry-wide overcapacity continues to weigh on margins, particularly in the petrochemicals segment.
- The company faced increased logistics and insurance costs due to geopolitical tensions, impacting overall profitability.
Welcome to SABIC's Q1 2026 earnings call. My name is Sarah Alzamami, and I'll be serving as a moderator today. Please note that the call is being recorded. A transcript of the recording, together with supplementary materials will be published on the Investor Relations website on SABIC's website. Today's earnings call will feature SABIC's CEO, Dr. Faisal Alfaqeer; its CFO, Mr. Salah Al-Hareky and its IRO, Mr. Naif AlAyed.
Naef will now take us through an outline of today's event.
Thank you, Sara, and thank you to everyone joining SABIC's Q1 2026 earnings call. Let me begin by pointing out that forward-looking statements will be made on this call. These statements are based on assumptions, risks and uncertainty. So they are not guarantees of SABIC future performance. Actual outcomes may differ materially from what the statements imply. Further details about our forward-looking statements, please refer to the disclaimer of the presentations and in our financial report, both
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