Saudi Basic Industries Corp. returned to profit in the third quarter, earning about 500 million riyals ($133 million) in the three months to September after a war-hit second quarter, as revenue rose 14% from the previous quarter to 28.17 billion riyals and adjusted EBITDA climbed 40% to 4.75 billion riyals.

The result matters to Asian buyers and investors because SABIC, 70% owned by Saudi Aramco, is one of the largest suppliers of polymers, methanol and fertilizers to factories from China to Southeast Asia. Its recovery shows how far the Gulf's chemical exports have come back since attacks on Saudi energy infrastructure disrupted output earlier this year, and it lands days before Aramco reports its own quarterly numbers.

The Riyadh-based company disclosed the figures in a filing to the Saudi stock exchange on Oct. 25, according to The National. Net profit attributable to shareholders rose 16.3% from a year earlier and reversed an 833 million riyal loss in the second quarter, which The National attributed to the regional conflict.

SABIC's recovery from the second quarter

Most of the improvement came from operations. Adjusted EBIT jumped 434% from the second quarter to 2.17 billion riyals, according to figures carried by TradeArabia. Adjusted net income was 840 million riyals, against an adjusted loss of 380 million riyals three months earlier, and adjusted earnings per share were 0.28 riyal.

Sales are still below last year's level. Revenue was about 3% lower than in the third quarter of 2025, when it was 29.08 billion riyals, Asharq Al-Awsat reported. For the first nine months, revenue fell 10.7% to 79.13 billion riyals.

The nine-month bottom line has nearly recovered. SABIC's loss for January to September narrowed to 320 million riyals from 4.84 billion riyals a year earlier. Asharq Al-Awsat said the quarter's profit was helped by an improvement of 1.62 billion riyals in results from joint ventures and associates, mainly from reversing impairments on listed European equity investments. A loss of about 985 million riyals from discontinued operations offset part of the gain.

Net debt edged up to 3.03 billion riyals at Sept. 30 from 2.73 billion riyals at the end of June.

Chief Executive Faisal Alfaqeer said the company had shown "exceptional resilience, despite geopolitical developments and market headwinds." He named portfolio optimization, transformation and selective growth as its priorities. The company did not give formal profit guidance.

Smaller footprint in the West, more capacity at home

SABIC used the quarter to keep shrinking its exposure to Europe and the Americas. It completed the sale of its engineering thermoplastics business in those regions for an enterprise value of $450 million. The company said its transformation program has so far delivered 3.56 billion riyals of recurring EBITDA gains toward a 2030 target of 11.3 billion riyals.

It is also cutting spending. Asharq Al-Awsat reported that SABIC lowered its full-year capital expenditure guidance to $3 billion to $3.3 billion, from $3.5 billion to $4 billion. Operating cash flow after capital spending rose to about 5.61 billion riyals in the first nine months from 3.94 billion riyals a year earlier.

At home, new capacity is lined up in products Asia buys. SABIC Agri-Nutrients took a final investment decision on an ammonia and urea complex in Saudi Arabia with annual capacity of 1.2 million tons of ammonia and 2.6 million tons of urea, which would raise its urea capacity by 54%, according to the company's results summary. The Ministry of Energy also allocated feedstock for a new 1.8 million-ton-a-year methanol plant in Jubail.

The conflict risk to SABIC and Saudi Aramco

The rebound comes as Saudi energy assets remain targets. On Oct. 13, a Houthi missile attack set fire to an administrative building in Aramco's Dhahran complex, where SABIC has a large presence, The National reported. Asharq Al-Awsat said the East-West crude pipeline, Saudi Arabia's route to Red Sea ports, was shut as a precaution in September after a new attack; the energy minister said on Oct. 6 that operations had resumed, and flows have since reached about 5.8 million barrels a day.

For Asian refiners and chemical makers already watching margins at home, where PetroChina and Sinopec lifted profit even as China fuel sales fell, Saudi supply reliability is a direct cost question. Saudi Arabia and Singapore agreed in principle on Oct. 26 to store Saudi crude in Singapore's Jurong Rock Caverns, which hold about 9 million barrels, with storage expected to begin in the second half of 2027, Asharq Al-Awsat reported.

Aramco, SABIC's parent, was scheduled to report its third-quarter results on Tuesday, Nov. 3, according to Maaal.