SABIC lowers capital investment estimates by 14 to 18%

Saudi Basic Industries Corporation (SABIC) lowered its capital investment estimates by 14-18 percent in the third quarter of 2026 compared with the previous quarter.

The company cut its capital investment to $3–3.3 billion in the third quarter from $3.5–4 billion in the second quarter, according to its latest investor presentation.

“Looking ahead, SABIC aims to continue focusing on sustainable long-term value creation through operational excellence, portfolio optimisation, corporate transformation, and selective growth,” the statement said.

No reason for the reduction in capital investment was given.

Third quarterly 2026 highlights included SABIC Agri-Nutrients taking the Final Investment Decision (FID) to build a new industrial complex for ammonia and urea production in the Kingdom, with total annual production capacity of 1.2 million metric tonnes for ammonia and 2.6 million metric tonnes per annum for urea, increasing the company’s urea’s production capacity by 54 percent compared to current levels.

SABIC also confirmed allocation of necessary feedstock by the Ministry of Energy for a new methanol production plant in Jubail with a production capacity of 1.8 million tonnes per year.

In addition, SABIC plans to drive growth in strategic, profitable markets and complete the divestment of its Engineering Thermoplastics business in the Americas and Europe for an enterprise value of $450 million, as part of its portfolio optimisation programme.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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