SearchSABIC on the Capital Markets
Delivering sustainable returns remains central to our strategy.
Salah Al-Hareky
Executive Vice President, Corporate Finance
(Chief Financial Officer)
The past year was marked by continued volatility in the global petrochemical industry, resulting in challenging market dynamics that required disciplined financial management and proactive responses to a prolonged downcycle. SABIC's financial strength enables us to operate resiliently through the downturn, invest selectively for the future, and continue delivering shareholder value.
SABIC's financial strength enables us to operate resiliently through the downturn, invest selectively for the future, and continue delivering shareholder value.
Our financial framework prioritizes capital allocation first to run and maintain capital expenditure, then to shareholder dividends, and finally to accretive growth investments. This systematic approach preserves balance sheet strength and financial flexibility, directs funding toward businesses that reinforce our competitive advantages and generate attractive risk-adjusted returns, ultimately supporting the execution of our strategy.
Amid persistent industry oversupply and weaker demand growth, we have taken decisive action through two corporate programs: Portfolio Optimization and Transformation.
Under Portfolio Optimization, we have announced the divestment of our European Petrochemicals (EP) and Engineering Thermoplastics (ETP) businesses in the Americas and Europe for a combined Enterprise Value of US$ 950 Mn, as a continuation of recently completed divestitures (including Functional Forms, Hadeed and Alba), and to focus on competitively advantaged positions in Saudi Arabia and ensure capital is optimized. Collectively, these transactions reflect a deliberate step to halt prolonged financial leakages and redirect funds toward businesses with stronger profitability and more sustainable long-term prospects. They will enhance cash flow quality and improve capital efficiency.
Through our Transformation program, we have entered a new phase targeting a recurring annual EBITDA impact of US$ 3 Bn. by 2030, driven by US$ 1.4 Bn. in cost excellence and US$ 1.6 Bn. in value creation. This journey is designed to unlock greater shareholder value and reshape our performance trajectory.
Delivering sustainable returns remains central to our strategy. Despite industry headwinds, SABIC continues to generate solid free cash flow, supporting attractive and reliable dividend distributions. Our commitment to returns is balanced with maintaining balance sheet strength and preserving the flexibility to invest selectively in growth, innovation, and operational excellence.
Looking ahead to 2026, our priorities include completing the announced divestments in Europe and the Americas and advancing additional strategic options to further strengthen our portfolio and financial performance. We will selectively invest in growth projects that meet and exceed our returns hurdle rate with continued focus on creating more synergies with our majority shareholder Aramco.
Shareholder structure
At the end of 2025, 70% of SABIC's shares were held by Aramco Downstream Company*, a wholly owned subsidiary of Saudi Aramco, with the remaining 30% in free float. Our foreign investor base expanded from under 1% in 2018 to 6.21% by the end of 2025, now comprising nearly 21% of our free float. This illustrates how our international investment grew alongside global investors' interest in Saudi Arabia following the country's reclassification as an emerging market in 2018.
* The company name was changed from Aramco Chemicals Company to Aramco Downstream Company.
Share performance
Despite the challenging environment, SABIC remained one of the most actively traded stocks on the Saudi Exchange in 2025, with a total traded value of SAR 25.42 Bn. (US$ 6.8 Bn.). The share price opened the year at SAR 67.0 and closed at SAR 51.30. The company represented a 15% weighting within the materials sector, underscoring its strategic importance to the Saudi capital market and its high level of investor engagement.
In 2025, 15 analysts followed the company, with 12 recommending to hold and 3 advising to buy. This balanced outlook reflects near-term cyclical pressures alongside SABIC's strong balance sheet, cost-efficiency initiatives, and ongoing focus on portfolio optimization and operational excellence.
| Other share information |
|
2025 | 2024 |
|---|---|---|---|
| Number of registered shares issued (million) | 3,000 | 3,000 | |
| Number of registered shares eligible for dividend (million) | 3,000 | 3,000 | |
| Share price at year-end (SAR) | 51.3 | 67 | |
| Highest of the year (SAR) | 69.2 | 89 | |
| Lowest of the year (SAR) | 50.6 | 66.5 | |
| Annualized volatility | 18.6 | 22.5 | |
| Market capitalization at year-end (SAR Mn.) | 153,900 | 201,000 | |
| Market capitalization at year-end (US$ Mn.) | 41,040 | 53,600 | |
| Dividend declared per share (SAR) | 3 | 3.4 |
Dividend distribution
Distributing competitive dividends to our shareholders over the long term amid ongoing market challenges in the chemical industry remains a key priority. We use a balanced capital allocation approach, ensuring competitive dividend distribution across the cycle while supporting long-term value. In 2024, we disclosed our new mechanism for interim dividend distribution, under which interim dividends for the first half of the year will be announced following the approval of interim financial results for the second quarter of that same year. Similarly, the interim dividend distribution for the second half of the year will be announced after the annual financial results for the same year are finalized. This approach aligns with global best practices, reduces the time between announcement and distribution, and enables the Board to make dividend decisions based on financial statements reflecting company performance over the reporting period.
Dividend distribution details for 2025
| Dividend cycle |
|
Dividend per share (SAR) | Percentage of distribution to share nominal value | Number of shares | Date of eligibility | Total distributed dividends (SAR) | Distribution date |
|---|---|---|---|---|---|---|---|
| 2H 2024 | 1.7 | 17 | 3,000,000,000 | February 11, 2025 | 5,100,000,000 | March 4, 2025 | |
| 1H 2025 | 1.5 | 15 | 3,000,000,000 | August 19, 2025 | 4,500,000,000 | September 9, 2025 | |
| 2H 2025 | 1.5 | 15 | 3,000,000,000 | March 8, 2026 | 4,500,000,000 | March 31, 2026 |
Read more about our capital market performance and investor engagement.
Investor Relations
SABIC maintains strong engagement with capital market participants, including institutions, retail investors, and financial analysts. Our Annual General Meeting (AGM) recorded over 77% shareholder attendance through modern digital technology.
During the year, SABIC also convened an Extraordinary General Meeting (EGM) with 76.98% shareholder attendance through modern technology, and approved transferring the general reserve balance SAR 110,889,032,000 as stated in the announced Annual Consolidated Financial Statements for the year ended on December 31, 2024, and Condensed Consolidated Interim Financial Statements for the third quarter ended on September 30, 2025 to the Retained Earnings account.
We enhanced our investor engagement by actively participating in numerous conferences and roadshows, ensuring strong physical and virtual connections with the global investment community. We engaged with regional and local investors alongside international investors across the US, Europe, and Asia by participating in a diverse range of regional, emerging market, and industry-specific events.
We provide comprehensive information through our website, and shareholders can reach the Investor Relations (IR) team directly via email (IR@SABIC.com), telephone (+966 112 258 000), or mobile (+966 530 013 051). To enhance shareholder satisfaction, a dedicated IR Call Center was established in 2022, accessible through SABIC's page on the Saudi Exchange website.
Our financing principles
Our financing principles aim to always ensure that our activities support effective, efficient, and prudent financial management and controls, in line with SABIC's strategic and business objectives. We continuously evaluate the optimal capital and financing structure to align with our strategic plans and growth objectives. At the end of the year, SABIC maintained a strong net cash position of SAR 3.61 Bn.
SABIC RATINGS
Credit ratings
Standalone credit ratings have consistently remained in the A+ band, positioning us among the highest-rated global chemical companies. In 2025, our long-term credit rating was upgraded to Aa3 by Moody's following the upgrade of Saudi Arabia's sovereign rating, reflecting our resilience and strong financial position.
ESG ratings
We participate in a number of environmental, social, and governance (ESG) ratings and are listed in several sustainability indices.
- We are rated BBB by MSCI ESG, qualifying us for inclusion in the MSCI ESG indices.
- Our Sustainalytics score placed us at medium risk, in line with our chemical industry peers.
- SABIC's ESG score, as reflected in the Bloomberg ESG Data Index, continues to rank among the leaders in the Basic and Diversified Chemicals sector.
Disclaimer: This abridged interactive version of the SABIC Integrated Annual Report 2025 is based on the original PDF report published on this website. In case of any discrepancy, the original PDF report will prevail.