RIYADH: SABIC’s largest investment in China, the Fujian petrochemical complex, is on track for startup in the fourth quarter of 2026 after three plants completed trial runs, the company’s CEO said.
The Saudi petrochemicals giant also reaffirmed that its transformation program is on course to deliver $3 billion in recurring annual earnings before interest, taxes, depreciation and amortization improvements by 2030, having already achieved $950 million year to date, management told analysts during its third-quarter earnings call.
The updates follow SABIC’s report of adjusted net income of $224.3 million for the third quarter of 2026, a recovery from an adjusted net loss of $101.4 million in the previous three months.
Revenue rose 14 percent quarter on quarter to $7.52 billion, while adjusted EBITDA climbed 40 percent to $1.26 billion.
CEO Faisal Al-Faqeer said: “During quarter three, three plants that produce mainly polyethylene and polypropylene successfully completed their trial runs on the first attempt, keeping us on track for full startup during the fourth quarter of 2026.”
China and Asia growth push
Al-Faqeer described China and the broader Asian region as “key growth markets,” citing their relatively strong growth. The Fujian complex sits alongside two other projects in SABIC’s “selective growth” strategy, which focuses on advantaged value chains.
SABIC Agri-Nutrients has taken a final investment decision on a seventh plant in Jubail, with an investment of about $3.5 billion.
It will produce 2.6 million tonnes of urea and 1.2 million tonnes of ammonia a year, lifting urea capacity by 54 percent, with commercial operations planned for the fourth quarter of 2030. SABIC has also secured a feedstock allocation for an additional methanol plant with capacity of 1.8 million tonnes a year.
Even as it pursues growth, SABIC lowered its 2026 capital expenditure guidance to $3.3 billion, citing capital efficiency and project prioritization.
Transformation on track
The transformation program, launched in 2024, targets a $3 billion improvement in recurring annual EBITDA by 2030, measured against the 2024 base year. That means SABIC has delivered nearly a third of the target in the first nine months of 2026.
Alfaqeer noted that the program is “well on track to deliver a recurring EBITDA uplift of $3 billion by 2030, driven by structural cost reduction, improvements in production reliability, and commercial performance.”
Management said the target is made up of $1.4 billion from cost reduction and $1.6 billion from value creation and synergies.
Cost measures include general and administrative expenses, manufacturing cash costs, procurement and supply chain. Value creation covers manufacturing yield and throughput, commercial excellence, and feedstock quality.
“Our transformation program delivered $950 million year to date, with approximately 55 percent coming from cost excellence and 45 percent from value creation,” said SABIC’s Chief Financial Officer Salah Al-Hareky.
Portfolio clean-up
SABIC said its portfolio optimization actions have generated $2.3 billion in cash proceeds.
The sale of its engineering thermoplastics business in the Americas and Europe was completed in the third quarter, while the sale of its European petrochemicals business is expected to close by the end of 2026.
The company said the two divestments remove businesses that recorded combined average annual operating losses of about $1.4 billion in 2024 and 2025.