Sahara International Petrochemical Company (2310) Q2 2025 earnings summary

Executive summary

• Revenue for the six months ended 30 June 2025 was SAR 3.88 billion, up from SAR 3.69 billion year-over-year, but net profit attributable to equity holders dropped to SAR 26.1 million from SAR 303.0 million.

• Delivered shareholder value through consistent dividends despite challenging market conditions and weak fundamentals.

• The period was marked by lower selling prices for products and higher feedstock costs, impacting profitability.

• Focused on cost-driven growth, operational excellence, and portfolio optimization to maintain profitability.

• Significant impairment losses were recorded, including SAR 200 million for SCC and SAR 171 million for Samapco.

Financial highlights

• Q2 2025 revenue was SAR 1,906.3 million and EBITDA SAR 316.6 million (16.6% margin).

• Net loss of SAR 169.2 million in Q2 2025, including a SAR 171 million impairment on Samapco investment.

• Year-to-date net income stands at SAR 26.1 million.

• Basic and diluted EPS for the six months were SAR 0.04, down from SAR 0.42 and SAR 0.41, respectively.

• Free cash flow for Q2 2025 reached SAR 173.7 million.

Outlook and guidance

• Management expects the decline in selling prices to be short-term, with improvement anticipated over the next twelve months.

• Market fundamentals remain weak with limited seasonal demand recovery due to economic challenges and trade tensions.

• Management remains committed to advancing growth strategy with a cost-driven approach while maintaining profitability.