Saudi Petrochemical Losses Halved in H1 2026

Saudi petrochemical companies listed on the Saudi Exchange sharply narrowed their losses in the first half of 2026, signalling a broad recovery across the sector. Aggregate net losses of nine listed producers fell to about SAR 1.7 billion, down from roughly SAR 3.4 billion a year earlier — a reduction of more than 50%.

The turnaround was even clearer across a wider group of producers. Excluding two firms, Saudi-listed petrochemical companies swung from an aggregate net loss of SAR 5.46 billion in H1 2025 to an aggregate net profit of about SAR 2.43 billion in H1 2026. The momentum built early in the year: in Q1 2026, combined net profits rose 111.75% year-on-year to more than SAR 374.36 million, while total operating profits jumped around 492% to SAR 2.06 billion.

Company-level results

SABIC narrowed its H1 2026 net loss to about SAR 820 million, down roughly 84–85% from around SAR 5.3 billion a year earlier. Saudi Kayan posted a net loss of about SAR 1.29 billion, slightly wider than the prior year, while Tasnee recorded a loss of about SAR 889.1 million, the second-largest for the period.

Not all firms improved. Sipchem swung to a net loss of about SAR 807.2 million from a small profit a year earlier, with revenues down roughly 46% to around SAR 2 billion. Advanced Petrochemical Company reported a loss of about SAR 69 million, reversing a profit of some SAR 153 million.

The sector's improved performance reflects higher operating efficiency, a strong recovery in operating profits, lower raw-material costs for some firms, reduced administrative expenses, fewer losses from discontinued operations and the absence of major one-off restructuring charges. For residents and investors, the results point to a steadier footing for one of the Kingdom's key industrial sectors and a source of employment nationwide.

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