Saudi Basic Industries Corporation’s (SABIC) net profit is expected to fall 47% year-on-year (YoY) to 130 million Saudi riyals ($34.63 million) in Q1 2025 compared to SAR 246 million in Q1 2024, Riyad Capital said in its latest earnings preview. 

Yanbu National Petrochemical Company (Yansab) is predicted to report a 94% YoY drop in net profit to SAR 6 million in Q1 2025.

The net earnings of Saudi International Petrochemical Company (Sipchem) are seen to fall by 81% to SAR 34 million in Q1 2025 from SAR 182 million in the same period last year.

SABIC Agri-Nutrients Company will see a net profit rise of 4 percent YoY to SAR 877 million in the first quarter, the report said.

"We maintain our uncertain-to-negative outlook on most products based on increasing Chinese capacity, utilization rates being

lower globally, and additional skepticism driven by the recently announced tariff related trade policies of the United States. However, since the United States is a

net-exporter of Petrochemicals, this latest shakeup in global trade could present an opportunity for Saudi firms; to fill any supply gaps left in its wake," the report said.

Riyad Capital expects an increase of 7% YoY in top-line performance for companies under its coverage. In addition, margins may experience some relief for some producers, but not across the board, driving profitability to decline by 54% YoY. 

The brokerage forecasts higher volumes, margins, and net profits for ammonia and urea producers, given the continued disruptions in the supply of urea and seasonal demand pressure supporting dynamics for fertilisers.

(Editing by Brinda Darasha; brinda.darasha@lseg.com)