Sahara International Petrochemicals Company (Sabic) announced its preliminary financial results for the period ended June 30, 2026, with net losses in the second quarter rising by 249.8 percent year-on-year to reach SAR 591.9 million (equivalent to approximately $157.84 million), compared to a loss of SAR 169.2 million in the same quarter of the previous year.

On a half-year basis, the company turned to a loss in the first six months of 2026, posting a net loss of SAR 807.2 million (approximately $215.25 million), compared to a profit of SAR 26.1 million in the same period last year, resulting in a loss per share of SAR 1.11, as shown in its financial results published on the Saudi Stock Exchange (Tadawul) website.

In terms of sales, the company's revenue in the second quarter recorded a sharp decline of 54.8 percent to SAR 860.9 million (approximately $229.57 million), compared to SAR 1.906 billion in the corresponding quarter of 2025. First-half revenue also fell by 46.1 percent to SAR 2.088 billion (approximately $556.8 million).

Sabic attributed the deepening of its losses and decline in revenue - despite a slight increase in average selling prices of its products - to continued challenges and disruptions in supply chains, which led to a decrease in sales volumes and accumulation of unsold inventory, along with higher prices of key feedstock materials such as butane, ethylene, and propane, which heavily pressured profit margins.

The company added that the losses were also impacted by higher losses from its share of investments in joint ventures and associates, due to the execution of planned periodic maintenance at one of its subsidiaries, in addition to recording an impairment provision on its investment in an associate company amounting to SAR 328 million (equivalent to $87.46 million).