SABIC (2010) Q4 2024 earnings summary

Executive summary

• Global GDP growth improved slightly in Q4 2024, aided by lower inflation, easier monetary policy, and reduced energy costs, but petrochemical overcapacity and low utilization rates persisted.

• 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 net loss in 2023, and cash flow from operations totaled $4.4 billion.

• Major divestments of non-core assets (Hadeed steel, Alba aluminum, Functional Forms) were completed, sharpening focus on core business.

• SABIC introduced 135 new products, improved its Net Promoter Score by 5% year-over-year, and achieved global recognition through innovation and sustainability awards.

Financial highlights

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

• Free cash flow for 2024 was $1.64 billion (SAR 6.16 billion), down 56% from 2023; cash flow from operations totaled $4.4 billion.

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

• EBITDA margin improved to 14% in 2024 from 13% in 2023.

• Gross profit rose 16% to SAR 25.62 billion, with a gross margin of 18% versus 16% last year.

Outlook and guidance

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

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

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