CEO's Message

Looking back on 2024, we see a global chemical industry in a challenging economic climate undergoing profound changes to deal with geopolitical uncertainty, shifting consumer preferences, and the ever-growing urgency to decarbonize. While key customer industries, like packaging, construction, and consumer goods, saw some growth in chemicals demand, others remained stagnant. In our own industry, persistent excess supply and low operating rates continued to pressure margins, particularly in Northeast Asia and Europe, where economic recovery lagged.

Our financial performance in 2024 reflected the prevailing macroeconomic environment. Full-year revenue reached SAR 139.98 Bn. (US$ 37.33 Bn.), down 1% year-over-year due to pricing pressures and overall stagnant demand.

However, disciplined execution helped drive solid earnings in 2024. EBITDA reached SAR 19.47 Bn. (US$ 5.19 Bn.), up 2% year-over-year. Cost optimization and a focus on high-margin opportunities kept our EBITDA margin stable at 14%. Net income from continuing operations rose 61% to SAR 2.10 Bn. (US$ 0.56 Bn.), supported by earnings growth and focused cost management.

In parallel with these developments, our collaboration with Saudi Aramco continued to generate value. Since Saudi Aramco's acquisition of 70% of SABIC's shares on June 16, 2020, the cumulative synergy value has surpassed SAR 9.66 Bn. (US$ 2.57 Bn.) as of the end of 2024, including a synergy value of SAR 3.04 Bn. (US$ 0.81 Bn.) realized in 2024.

A strong cash position and balance sheet have long been hallmarks of SABIC's financial approach, ensuring resilience through industry cycles. Free cash flow remained strong at SAR 6.16 Bn. (US$ 1.64 Bn.) in 2024, although lower than the prior year. Net debt stood at SAR -3.01 Bn. (US$ -0.80 Bn.).

Despite the modest financial performance, 2024 was a year of measured progress in the execution of SABIC's long-term strategy. We reinforced our foundation, advanced key transformation initiatives, and stayed focused on our long-term objectives. Our emphasis on operational efficiency and agility helped us manage the petrochemical industry's inherent cyclicality and position ourselves for a stronger 2025.

A sharper focus on our core portfolio is the key to our future direction. In 2024, we completed the divestments of Hadeed (Saudi Iron and Steel Company) and the Functional Forms business and signed an agreement to sell our stake in Aluminium Bahrain B.S.C. (Alba). These actions are part of a global portfolio review to ensure that capital is redirected toward our competitive strengths while underperforming assets are divested or repositioned. By managing our core portfolio in this way, we are increasing our capital efficiency and maximizing value creation.

Alongside portfolio management, we are also investing in projects that will expand our market presence and strengthen our competitive edge, with Asia as a key growth region. Our major projects include the SABIC Fujian Petrochemical Complex in China, recognized by China Media Group as one of the Top 10 “Investing in China” cases for 2024. We are also progressing with construction on the world's largest MTBE plant at Petrokemya in Saudi Arabia, expanding our Nexlene capacity at SABIC SK Nexlene Company (SSNC) in South Korea, and strengthening our specialty chemicals footprint with a new ULTEM™ resin manufacturing facility in Singapore.

Innovation and sustainability are central to our growth strategy as we strive to meet evolving customer and stakeholder expectations, and I would like to highlight some key achievements for 2024:

• The mechanical completion of our mixed-plastic-waste pyrolysis unit in Geleen, the Netherlands, and the commissioning of our hydrotreater demonstration unit are important steps in developing our capabilities to convert plastic waste into high-quality circular feedstock.
• At our Genk site in Belgium, we installed what is, to date, the world's largest solar array made entirely from recyclable materials. These plastic panels weigh 50% less and have a 25% lower carbon footprint than traditional panels, expanding renewable energy options for industrial roofs with limited load-bearing capacity.
• In partnership with BASF and Linde, we inaugurated the world's first large-scale demonstration plant for an electrically heated steam-cracking furnace at BASF's Ludwigshafen site. Our next steps will be to validate the technology's ability to reduce operational Scopes 1 and 2 CO₂ emissions and gather data for industrial-scale implementation.
• We launched a new portfolio consisting of low-carbon methanol products that incorporate captured CO₂ as a raw material and are certified under the ISCC Carbon Footprint Certification. This initiative reinforces our position as a pioneer in carbon capture and utilization (CCU) technology, with our CCU facility at United still being one of the largest of its kind in the world.

Our leadership in innovation and sustainability has earned international recognition. We received the 2024 ICIS Innovation Award for Best Process Innovation for our electric steam cracking furnace project with BASF and Linde, as well as an R&D 100 Award for our LNP™ STAT-KON™ compound material for automotive batteries. SABIC also retained its EcoVadis Gold rating for sustainability performance, placing us among the top five percent of global companies assessed.

2024 also coincided with a significant milestone: 30 years of SABIC Technology & Innovation (T&I). Over three decades, T&I has turned SABIC into a global leader in advanced materials. Our R&D advancements continue to drive our business and contribute to breakthroughs in circular and low-carbon processes and products.

Executing our strategy requires a leadership culture that empowers employees at every level. In 2024, we sharpened our focus on leadership development through initiatives such as our Leadership Boot Camp, which is designed to instill the right mindset to make the work environment conducive to quick decision-making, open but respectful conversations, and life-long learning. At the same time, we strengthened career development pathways by integrating structured competency-based strategies and fostering meaningful talent discussions across the organization. Our leadership model ensures that growth opportunities are accessible to all employees, equipping them to take ownership of their careers and contribute to a culture of innovation and continual learning.

At the same time, operational excellence is fundamental to running our sites safely, efficiently, and responsibly. In 2024, we concluded the year with our best-ever safety performance, achieving a Total Recordable Injury and Illness Rate of 0.09 with zero fatalities among employees and contractors. But our dedication to safety extends beyond compliance; it is embedded in how we work. We focus on leadership accountability and regional, asset-specific safety improvements rather than only broad, group-level averages and corporate metrics.

Recognizing the need to safeguard our data and infrastructure, we also strengthened our cybersecurity framework across corporate and manufacturing sites. Alongside this, we bolstered our governance framework with the introduction of a new Board-approved Code of Ethics and obtained our third consecutive Ethisphere Compliance Leader certification.

As a company rooted in the Gulf region, we stand apart as a bridge between emerging and developed markets. Our long-term success hinges on our ability to anticipate change, adapt with agility, and build on our competitive strengths. At SABIC, we see these shifts in the sector as opportunities to grow and lead, to drive change rather than simply react to it. Our impact goes beyond supplying materials; we are shaping the next era of the sector’s transformation, aligning our strategy with Saudi Vision 2030 to advance economic diversification, industrial development, and sustainable growth. As our growth strategy moves into high gear in 2025, our focus remains on execution – turning ambition into action.

I want to express my gratitude to all who make SABIC what it is – employees, customers, shareholders, and partners. Your trust, dedication, and collaboration drive our progress and make it possible to deliver on our ambitions.

_{Disclaimer: This abridged interactive version of the SABIC Integrated Annual Report 2024 is based on the original PDF report published on this website. In case of any discrepancy, the original PDF report will prevail.}