Sahara International Petrochemical Company (2310) Q1 2025 earnings summary

Executive summary

• Demonstrated resilience with a strong balance sheet and positive financial indicators despite challenging market conditions.

• Revenue for Q1 2025 reached SAR 1,969.8 million, up 2.3% year-over-year, with net profit at SAR 230.3 million, a 6.2% increase from Q1 2024.

• Continued execution of long-term growth strategy, including new feedstock allocations and ongoing expansion projects.

• Profitability was supported by a significant share of profit from equity accounted investees, offsetting lower operating profit due to higher costs and a SAR 200 million asset impairment.

• The Group's performance was impacted by lower selling prices and higher feedstock costs, but management expects improvement in the next twelve months.

Financial highlights

• Q1 2025 revenue reached SAR 1,969.8 million, with EBITDA at SAR 375.5 million (19.1% margin), and net income at SAR 195.3 million.

• Net profit for Q1 2025 was SAR 230.3 million, up 6.2% year-over-year, aided by a SAR 429 million gain from TSOC loan restructuring.

• Free cash flow stood at SAR 237.4 million; gearing ratio at 0.13x.

• Net income included a positive one-off from debt restructuring (SAR 429m) and a negative one-off from a SAR 200m impairment due to mothballing the EA plant.

• Basic and diluted EPS for Q1 2025 were SAR 0.27, up from SAR 0.25 in Q1 2024.

Outlook and guidance

• Near-term market outlook remains cautious due to global trade tensions, economic challenges, and chemical market downcycle.

• Management anticipates a recovery in product selling prices and improved performance over the next twelve months.

• Management is focused on cost optimization, operational excellence, and agile marketing to maintain competitiveness.