Although SABIC returned to profitability in the first quarter of 2024 – which reached 250 million riyals – profits fell below analysts’ expectations, which indicates the continuing challenges facing the company.

According to analysts, one of the most important factors affecting performance is the weak global demand for petrochemicals. As the global economic slowdown led to a decrease in demand for SABIC products; Which led to lower prices and quantities sold.

High feedstock prices also pose a burden on SABIC's profitability margin as they are the main raw materials for its products, in addition to market uncertainty. As geopolitical tensions and high inflation cast a shadow over growth expectations; Which creates a difficult investment environment.

SABIC has a strong net cash position that provides it with a margin of maneuver in light of difficult circumstances, in addition to implementing a large investment plan that helps it enhance its production capacity and diversify its products, and cost-reduction efforts help the company mitigate the impact of rising feedstock prices.

SABIC's growth outlook remains uncertain in the short term; It depends on the improvement in global demand for petrochemicals, the stability of feedstock prices, and the decline in market uncertainty, while its long-term success depends on adapting to the changing global economic environment, exploiting its strong capabilities, and implementing its strategy effectively.