SABIC (2010) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue rose to $9.52 billion (SAR 35.72 billion), up 9% quarter-over-quarter and 5% year-over-year, driven by higher sales volumes and improved margins.

• Net income reached $582 million (SAR 2.18 billion), up 85% year-over-year and 772% sequentially, with EPS from continuing operations at SAR 0.74.

• EBITDA improved to $1.52 billion (SAR 5.70 billion), up 26% quarter-over-quarter and 13% year-over-year, with margin rising to 16%.

• Completed Hadeed divestment to PIF, supporting portfolio optimization and chemicals-focused strategy.

• Earned a gold medal from EcoVadis, ranking in the top 5% globally for sustainability.

Financial highlights

• Revenue: $9.52B (SAR 35.72B) in Q2 2024, up 9% QoQ and 5% YoY; H1 2024 revenue at $18.24B (SAR 68.4B), down 3% YoY.

• Net income: $582M (SAR 2.18B) in Q2 2024, up 85% YoY and 772% sequentially; H1 2024 net income at $650M (SAR 3.4B), up 32% YoY.

• EBITDA: $1.52B (SAR 5.70B), margin at 16% (up from 14% in Q1 2024).

• Free cash flow was negative at -$380M (SAR -1.44B) in Q2 2024, impacted by working capital post-Hadeed deconsolidation.

• Net debt/EBITDA improved to -0.09x, maintaining a robust credit rating.

Outlook and guidance

• Global GDP growth for 2024 estimated at 2.7%.

• CapEx projected at the lower end of $4–5 billion for 2024, with focus on portfolio optimization and sustainability.

• Q3 2024 market trends expected to remain unchanged except for consumer goods, which may improve.

• Sale of Film & Sheet business expected within twelve months, pending regulatory approvals.

• Management assessing impact of new retirement age law on employee benefits.