SABIC (2010) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue reached $9.83 billion (SAR 36.88 billion), up 3% year-over-year and quarter-over-quarter, driven by higher sales volumes despite lower average selling prices and challenging market conditions.

• Net income was $268 million (SAR 1.76 billion), a significant turnaround from a loss in Q3 2023, but down 54% sequentially; net income from continuing operations was SAR 1.08 billion, up 102% year-over-year.

• EBITDA remained stable at $1.52 billion (SAR 5.69 billion), with a margin of 15.4%, slightly down from the previous quarter.

• Major portfolio optimization milestones included the completed sale of Hadeed, announced divestment of ALBA shares, and ongoing asset rationalization in Europe.

• Continued focus on sustainability, innovation, and expanding low-carbon solutions, with recognition for achievements in recycling, solar innovation, and process technology.

Financial highlights

• Q3 2024 revenue was $9.8–$9.83 billion (SAR 36.88 billion), up 3% sequentially and year-over-year; EBITDA was $1.52 billion, stable sequentially and up 1% year-over-year.

• Net income for Q3 was $268 million (SAR 1.76 billion), a $1 billion increase year-over-year, mainly due to fair valuation of Hadeed as discontinued operation in Q3 2023.

• EBIT rose 47% year-over-year to $660 million (SAR 2.48 billion); 9M EBIT up 14% year-over-year.

• Free cash flow for Q3 2024 was $1.05 billion (SAR 3.92 billion), rebounding from negative in the previous quarter.

• Net debt/EBITDA ratio at 0.02, with net debt position of SAR 0.41 billion as of September 30, 2024.

Outlook and guidance

• Global GDP growth for 2024 is forecast at 2.7%, with major central banks easing monetary policy.

• CapEx for 2024 projected at $3.3–$3.9 billion, reflecting disciplined capital management and growth investments.

• Focus remains on portfolio optimization, value creation from underperforming assets, and cost discipline.

• Market trends in Q4 2024 expected to remain unchanged in most sectors, with improvements anticipated in consumer goods, agriculture, packaging, automotive, and hygiene.

• Final sale consideration for Hadeed and ALBA shares is pending completion and regulatory approvals.