Yanbu National Petrochemical Company (YANSAB) achieved its highest quarterly profit since the second quarter of 2022, as its net profit surged 482% to SAR 258.8 million ($69 million), compared to SAR 44.5 million ($11.9 million) in the same period last year, despite ongoing geopolitical disruptions that have cast a shadow over supply chains and raised logistics and input costs.

On a quarterly basis, the company's net profit rose 2,210% compared to SAR 11.2 million ($3 million) in the first quarter of 2026.

In a statement published on the Saudi Stock Exchange (Tadawul), the company attributed the profit growth to higher average selling prices for all products compared to the same period last year, along with continued high plant reliability that enhanced operational efficiency, despite higher costs for some inputs and recording provisions of SAR 104 million ($27.7 million).

This performance comes as the petrochemical sector continues to face challenges linked to geopolitical volatility, while YANSAB benefited from the location of its industrial complex in Yanbu Industrial City on the Red Sea coast, providing a direct export outlet through one of the world's most important maritime trade routes.

Saudi Basic Industries Corporation (SABIC) holds a 51% stake in YANSAB.

Company Chairman Wazen Al-Sulami said that global economic activity showed relative improvement during the second quarter, but geopolitical developments continued to impose challenges on supply chains and contributed to higher logistics costs and some input costs.

Cautious Outlook for Q3

YANSAB, in its Q2 financial report, drew a cautious outlook for the third quarter of 2026, expecting continued gradual improvement in demand for petrochemical products, supported by the recovery of global industrial activity and improved manufacturing indicators.

The company also expects that the chemicals sector will follow a similar trajectory, with continued gradual improvement in demand and stability in key markets, supporting industrial consumption levels.

On the other hand, the company affirmed that geopolitical factors will remain the main driver of market trends in the coming period, likely continuing to pressure supply chains and raise logistics and some input costs, along with another challenge: the entry of new production capacities into the market, which may exert pressure on supply-demand balance and profit margins going forward.

YANSAB's stock rose 5% to SAR 32.86, leading the list of top gainers at the start of Wednesday's trading.