Sabic trims losses, First Mills grows, Solutions’ margins tighten in 2Q

Sabic trims its losses

Saudi Basic Industries Corporation (Sabic) trimmed its net losses in 2Q 2026 to SAR 833 mn, up from a SAR 4.1 bn loss a year earlier, owed almost entirely to the absence of one-off charges rather than a stronger operating quarter, according to a Tadawul disclosure. Revenue fell 17.9% y-o-y to SAR 24.8 bn as sales volumes dropped, only partly cushioned by higher average selling prices, according to its earnings release (pdf).

The y-o-y improvement came from what didn’t recur. Losses from discontinued operations shrank by SAR 3.8 bn — last year’s quarter carried impairments tied to the closure of Sabic’s Teesside cracker in the UK — while improved results from associates added SAR 732 mn and lower finance costs another SAR 380 mn, both against noncash charges booked a year earlier. Strip those out and the picture inverts: on an adjusted basis, Sabic swung to a SAR 384 mn loss from a SAR 1.2 bn net income in 2Q 2025.

Petrochemicals carried the damage, with its operating income shrinking to SAR 80 mn against a SAR 1.8 bn gain a year earlier — chemicals and polymers prices rose on tighter regional supply, but weaker volumes outweighed the pricing gain. Agri-Nutrients also softened, with income easing to SAR 490 mn from SAR 1 bn. Specialties was the exception, lifting operating income to SAR 220 mn from SAR 170 mn on stronger high-end demand.

The quarter’s supply routes also shifted. Polymer shipments from the Kingdom’s east coast to the west more than doubled as the war rerouted trade flows, and Sabic used its new Red Sea Express container service to keep deliveries moving. Sabic Agri-Nutrients completed its first west coast shipment of bagged and bulk urea.

On a 1H basis, net loss shrank to SAR 820 mn, compared to SAR 5.3 bn in 1H 2025. Revenue fell 14.3% y-o-y to SAR 51 bn.

REMEMBER- The chemicals giant spent the past few months reshaping its business. The firm completed the SAR 3.6 bn sale of its European operations in January before returning to the black in 1Q, reporting a net income of SAR 13.2 mn, compared with a SAR 1.2 bn loss a year earlier.

What’s next? Sabic’s projects are on track, with the Fujian Petrochemical Complex expected to begin operations in 4Q 2026, CEO Faisal Alfaqeer said. The company started commercial production at its 1 mn-ton MTBE plant during the quarter and signed a project development agreement with Rongsheng New Materials to develop advanced chemical materials for Asian markets. It is also weighing an equity investment of up to 50% in Rongsheng.

Dividends: Sabic will distribute SAR 3.3 bn in dividends for 1H 2026 at SAR 1.1 per share by 1 September, it said in a Tadawul disclosure.

Feed drives First Mills’ 2Q

First Mills grew its 2Q 2026 net income 28.3% y-o-y to SAR 66 mn, with revenue keeping pace with a 26.7% increase to SAR 301.3 mn, according to its earnings release (pdf). The milling company rode stronger animal feed sales and steady flour demand, while a richer product mix and tighter cost control helped convert revenue growth into wider margins.

Feed did the heavy lifting. Revenue from the segment jumped nearly 79% in the quarter after its acquisitions of Al Manar Feed Company and Al Kenan Al Arabia Trading Company expanded production and distribution capacity, while flour sales also grew on higher volumes. At the same time, First Mills diverted more bran into feed production rather than selling it, wagering on the higher-value business.

1H followed the same trajectory: First-half net income climbed 11.4% y-o-y to SAR 146 mn on revenue of SAR 634 mn, up 21.6%, boosted by similar drivers.

Dividends: First Mills will pay out SAR 99.3 mn in dividends for 1H 2026 at SAR 1.79 mn apiece, according to a Tadawul disclosure. The distribution is set for 19 August.

Solutions by stc’s revenues climb, net income trails

Solutions by stc posted a 1.6% y-o-y increase in its net income to SAR 453 mn in 2Q 2026, even as revenue climbed 11.6% y-o-y to SAR 3.2 bn, according to a Tadawul disclosure. Core ICT services did the heavy lifting, with revenue from the segment jumping 28.6%, while managed services also grew 3.3%. But most of that top-line growth was eaten up by higher operating costs, the absence of a one-off fair value gain booked a year earlier, lower finance income, and a bigger zakat bill.

On a 1H basis, the company’s bottom line rose 2.1% y-o-y to SAR 824 mn, while its revenue increased 9% y-o-y to SAR 6.2 bn on the same drivers.