Saudi Arabia's Sabic Narrows Loss on Higher Selling Prices, Despite Lower Volumes

By Farhan Rafid

DOHA, Qatar-Saudi Basic Industries Corp. reported a narrower second-quarter loss helped by higher average selling prices across key products, but revenue declined on lower sales volumes.

Sabic, which ranks among the world's largest petrochemicals manufacturers, said its net loss narrowed to 833 million Saudi riyals ($222 million) from 4.07 billion riyals in the same period a year earlier. Revenue fell to 24.81 billion riyals from 30.23 billion riyals.

Chief Executive Faisal Al-Faqeer said Sabic's strong balance sheet and disciplined approach to capital allocation would help it remain resilient amid geopolitical uncertainty, supply disruptions and elevated energy prices.

The quarter was marked by the U.S.-Iran war, disruptions to shipping through the Strait of Hormuz and higher energy and transportation costs. Commercial traffic through the waterway has slowed sharply, and Iran on Tuesday rejected an Omani proposal to divide control of shipping lanes evenly, complicating efforts to revive peace negotiations and restore reliable passage.

The war has severely disrupted regional petrochemical trade. Middle Eastern naphtha shipments fell to 692,000 metric tons in March, less than one-fifth of February's 4.06 million tons, according to S&P Global. The region normally accounts for nearly 25% of global polyethylene and polypropylene exports, making prolonged shipping disruptions a significant risk to Asian manufacturers and consumers.

Write to Farhan Rafid at farhan.rafid@wsj.com

(END) Dow Jones Newswires

July 29, 2026 05:02 ET (09:02 GMT)