Sabic’s 3Q petrochemicals sales up by 24pc from 2Q

: Petrochemicals
26/10/26

Saudi Basic Industries Corporation (Sabic) reported a 24pc increase in third-quarter petrochemicals sales volumes from the second quarter to 6.71mn t in the third quarter. Despite a challenging operating environment, the firm boosted overall sales volumes to around 80pc of levels before the start of the Middle East crisis in late February, it said today.

Sabic's petrochemicals segment includes two categories — chemicals, including olefins, methanol, aromatics, glycols, carbon dioxide and methyl tertiary butyl ether (MTBE), and polymers, comprising polyethylene (PE), polypropylene (PP), polycarbonate (PC), speciality products and other polymers.

Sabic leveraged alternative shipping routes after logistical disruptions in the strait of Hormuz constrained trade flows, increasing polymer volumes shipped from Al Jubail to Saudi Arabia's west coast ports by more than 230pc compared with pre-crisis levels for onward shipment to destination markets. The firm also took advantage of safe passage through the strait of Hormuz whenever available and reported a 38pc quarter-on-quarter increase in vessel liftings.

Petrochemicals sales prices fell by 10pc in the third quarter, primarily driven by lower polymer values that eased from elevated levels in the second quarter. Prices remained above 2024 and 2025 levels, but the firm expects petrochemicals markets to return to the lower part of the cycle once the Middle East crisis ends and regional production returns to normal rates.

Global petrochemical capacity continues to outpace demand, sustaining pressure on industry operating rates and margins and leading to rationalisation of disadvantaged assets across the industry. Sabic remains focused on addressing structural industry challenges through portfolio optimisation and selective growth. The firm completed the divestment of its engineering thermoplastics business in the Americas and Europe in the third quarter and remains on track to close the sale of its European petrochemicals business in the fourth quarter.

Sabic is focusing on key growth regions and value chains, with its Fujian Petrochemical complex in southern China on track for full start-up during the fourth quarter after three core units — which mainly produce PE and PP — successfully completed trial runs on the first attempt in the third quarter. The firm also announced a final investment decision to build an integrated 1.2mn t/yr ammonia and 2.6mn t/yr urea complex in Jubail, which will increase its urea capacity by 54pc by the end of 2030. Sabic's subsidiary secured feedstock allocation to develop an additional 1.8mn t/yr of methanol production capacity in Jubail.

Sabic's revenue increased by 14pc in the third quarter from the second quarter to 28.17bn riyals ($7.51bn), with a 30pc increase in sales volumes offsetting a 13pc decline in sales prices across products.

By Liana Minihan

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