SABIC and AMAK Post Q1 2026 Profits as Saudi Industrial Sectors Recover
Saudi Arabia's mining and chemical sectors showed signs of recovery in the first quarter of 2026, with two major industrial companies reporting improved financial performance after facing headwinds in previous periods.
Al Masane Al Kobra Mining Co. (AMAK) increased its net profit by 8.8 percent to reach 60 million riyals ($16 million) in the first quarter of 2026, demonstrating steady growth in the mining sector. The company's profitability gains reflect improved operational efficiency and market conditions for Saudi mining operations.
In the chemical sector, Saudi Basic Industries Corporation (SABIC) returned to profitability after significant losses in the prior year. SABIC posted net earnings of 13.2 million riyals ($3.52 million) in the first quarter of 2026, compared with a loss of 1.21 billion riyals a year earlier. The company's turnaround was driven by substantially lower financing costs, which benefited from fair value adjustments on derivatives, combined with improved gross profit margins.
SABIC's operational performance strengthened considerably during the quarter, with the petrochemicals giant reporting adjusted EBITDA of 4.15 billion riyals ($1.11 billion), representing a 25 percent increase from the fourth quarter of 2025. Revenue totaled 26.15 billion riyals ($6.97 billion) during the period. The company also reported adjusted net income of 816 million riyals, calculated as net cash from operating activities minus capital expenditure.
However, SABIC's balance sheet shifted during the quarter, moving from a net cash position of 3.61 billion riyals at the end of 2025 to a net debt position of 2.77 billion riyals by March 31, 2026. Despite this shift, the company's return to profitability after significant prior-year losses marks a major milestone in its financial recovery. The company plans to host an earnings call to discuss detailed results and strategic outlook.