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 2.23 billion), up 85% year-over-year and 787% sequentially, reflecting strong operational performance.

• 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 the transfer of the Hadeed steel business, marking a major portfolio milestone and aligning with a chemicals-focused strategy.

• Awarded a gold medal by EcoVadis, ranking in the top 5% globally for sustainability and ESG practices.

Financial highlights

• Q2 2024 revenue was $9.52 billion, up 9% quarter-over-quarter and 5% year-over-year; H1 2024 revenue at $18.24 billion.

• Net income for Q2 was $582 million, up 85% year-over-year and 787% sequentially; H1 2024 net income at $650 million.

• EBITDA reached $1.52 billion, up 26% quarter-over-quarter and 13% year-over-year; margin improved to 16%.

• Free cash flow was negative at -$380 million (SAR -1.44 billion), impacted by working capital balances post-Hadeed deconsolidation.

• Dividend distribution of $1.36 billion (SAR 1.70 per share) approved for H1 2024, up 6% from the prior year.

Outlook and guidance

• Global GDP growth for 2024 is estimated at 2.7%, with stable economic momentum and easing inflation.

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

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