SABIC (2010) Q4 2024 earnings summary

Executive summary

• Revenue for 2024 was $37.3 billion (SAR 139.98 billion), down 1% year-over-year, with EBITDA up 2% to $5.2 billion (SAR 19.47 billion) despite challenging market conditions.

• Net income reached $410 million (SAR 1.54 billion), reversing a prior year loss, and gross profit rose 16% to SAR 25.62 billion.

• $2.72 billion in dividends announced for 2024, reflecting a strong commitment to shareholder value.

• Major strategic projects advanced, including the $6.4 billion Fujian Petrochemical Complex in China and a new ULTEM resin facility in Singapore.

• 135 new products launched, a 5% year-on-year improvement in Net Promoter Score, and an 18% improvement in safety metrics achieved.

Financial highlights

• Annual revenue was $37.3 billion, a 1% decrease year-over-year; EBITDA rose 2% to $5.2 billion; net income was $410 million, up $1.1 billion from 2023.

• Q4 2024 revenue was $9.25 billion, down 6% sequentially and 1% year-over-year; Q4 EBITDA was $0.95 billion, up 7% year-over-year.

• Free cash flow for 2024 was $1.6 billion (SAR 6.16 billion), down 56% from 2023, reflecting less working capital optimization.

• EBITDA margin improved to 14% from 13% year-over-year.

• Net cash position at year-end was SAR 3.01 billion, down from SAR 8.76 billion.

Outlook and guidance

• Global GDP growth for 2025 expected at 2.5%, with slow economic growth and continued petrochemical overcapacity.

• Capital investment for 2025 projected at $3.5–$4 billion, focusing on operational excellence and selective growth.

• Demand in most end markets expected to remain stable in Q1 2025, with increases in transportation, industrial, and electronics sectors.