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SABIC Fertilizers hits lowest profits since COVID
Sabic Agricultural Nutrients' results for the second quarter of 2026 show sharp declines in profits and sales. Net profit dropped by 64%, reaching its lowest level since the COVID-19 crisis, due to rising costs caused by disrupted supply chains and higher shipping expenses resulting from the closure of the Strait of Hormuz and regional tensions. Revenues decreased by 27% to 2.4 billion riyals, with cost percentages rising to 70% of sales, leading to a gross profit margin of just 30%, the lowest since 2017, while operating and net profit margins deteriorated significantly. Despite the profit downturn, the company continued paying consistent cash dividends. The price-to-earnings ratio increased to 15.2 times, with expectations of improved demand in the third quarter as global markets stabilize and urea prices decline. Overall, the results indicate significant challenges ahead for the company, including rising shipping costs and strained supply chains.
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