YANSAB Triples Third-Quarter Profit to 237.3 Million Riyals as Fitch Affirms SABIC at A+
Yanbu National Petrochemical Co. (YANSAB) earned 237.3 million riyals in the third quarter of 2026, according to results it posted on the Saudi Exchange on 20 October. That is 3.2 times the 74.2 million riyals of a year earlier, on our calculation. SABIC Agri-Nutrients posted its results the same day. Its quarterly profit rose 27.7 percent from the second quarter to 484 million riyals. A day earlier, Fitch Ratings affirmed SABIC at A+ with a stable outlook.
SABIC holds 51 percent of YANSAB and 50.102 percent of SABIC Agri-Nutrients, according to the exchange’s substantial shareholder listings. YANSAB sold more than a year earlier, at better prices for most products. SABIC Agri-Nutrients sold more than in the second quarter. For SABIC, the rating agency expects volumes to recover from the third quarter.
YANSAB’s Margin Climbs to 14.1 Percent
Revenue rose 27.5 percent from a year earlier to 1,677.4 million riyals. YANSAB credits higher sales quantities, higher average prices for most products and high levels of plant reliability. Profit rose despite higher costs for some production inputs, the company says.
Profit moved much faster than sales. Revenue rose 361.6 million riyals on the year. Net profit rose 163.1 million riyals, equal to 45.1 percent of the extra revenue, on our calculation.
Net margin reached 14.1 percent, on our calculation, against 5.6 percent a year earlier. It also edged past the second quarter’s 13.8 percent, even though revenue was 10.7 percent lower than in that quarter. The company puts the quarterly dip in sales down to lower average prices, partly offset by higher volumes. The second quarter also carried provisions of 104 million riyals.
YANSAB quarterly results, SAR million
| Measure | Q3 2026 | Q3 2025 | Q2 2026 |
|---|---|---|---|
| Revenue | 1,677.4 | 1,315.8 | 1,878.9 |
| Gross profit | 343.9 | 206.6 | 533.5 |
| Operating profit | 232.8 | 66.4 | 274.4 |
| Net profit | 237.3 | 74.2 | 258.8 |
| Net margin | 14.1% | 5.6% | 13.8% |
Net profit attributable to shareholders, from the company’s results for the nine months to 30 September 2026. Net margins are our calculation.
The nine months tell the same story. Profit reached 507.3 million riyals, against 132.4 million riyals a year earlier. That is 3.8 times the 2025 figure, on our calculation. Earnings per share rose to 0.9 riyals from 0.24 riyals.
Most of that came in the last six months. The second and third quarters account for 97.8 percent of nine-month profit, on our calculation. The first quarter earned 11.2 million riyals, in a period that included a planned maintenance shutdown of the ethylene glycol plant from 25 January to 17 February. YANSAB set a first-half dividend of 1 riyal a share, 562.5 million riyals in total, for distribution on 28 September.
SABIC Agri-Nutrients Lifts Profit 27.7 Percent on the Quarter
Revenue jumped 33.6 percent from the second quarter to 3,220 million riyals. The company says sales quantities rose, while average prices eased. Net profit rose 105 million riyals from the second quarter, on our calculation.
The lift came below the operating line. Operating profit was 408 million riyals, against 423 million riyals in the second quarter. Net profit topped operating profit by 76 million riyals in the third quarter, on our calculation. In the second quarter it fell 44 million riyals short. The company points to a higher share of results from an associate and a joint venture. Total comprehensive income rose 52.6 percent to 551 million riyals.
SABIC Agri-Nutrients quarterly results, SAR million
| Measure | Q3 2026 | Q2 2026 | Change |
|---|---|---|---|
| Revenue | 3,220 | 2,411 | 33.6% |
| Gross profit | 803 | 712 | 12.8% |
| Operating profit | 408 | 423 | -3.5% |
| Net profit | 484 | 379 | 27.7% |
| Comprehensive income | 551 | 361 | 52.6% |
Net profit attributable to shareholders. Changes are the company’s own, rounded to one decimal.
Against the third quarter of 2025, net profit was 62.5 percent lower, at 484 million riyals versus 1,290 million riyals. The company cites lower sales quantities and higher selling, distribution and shipping costs from supply chain challenges, along with a lower share of results from an associate and a joint venture. Nine-month profit was 2,089 million riyals, against 3,334 million riyals.
Capacity is the longer story. On 9 September the board approved the final investment decision for its seventh project and awarded the engineering, procurement and construction contract to Samsung E&A, at a total cost the company puts at 3.465 billion dollars. The complex pairs a 1.2 million tonne a year ammonia plant with two urea plants of 2.6 million tonnes a year combined, plus a unit that traps carbon dioxide after combustion. Urea capacity will rise to 7.4 million tonnes a year from 4.8 million tonnes. That is 54.2 percent more, on our calculation. Construction is due to start in the fourth quarter of 2026, with commercial production in the fourth quarter of 2030.
SABIC Keeps Its A+ on Low Leverage
Fitch kept SABIC’s long-term issuer default rating at A+, level with its parent Saudi Aramco, which owns 70 percent. The short-term rating stays at F1+ and the national rating at AAA(sau). The agency cites low leverage, large scale and a structural cost advantage. It puts SABIC’s costs in the first or second quartile of global cost curves.
Shipping was the test this year. SABIC’s shipments fell 33 percent in the second quarter from the first, amid shipping disruptions. Adjusted EBITDA fell 18 percent over the same span. SABIC moved more polymers and urea through the kingdom’s west coast and sold more in the region. Higher chemical prices more than covered the extra logistics cost per tonne.
SABIC rating case, SAR billion
| Measure | 2026 | 2029 |
|---|---|---|
| EBITDA | 13 | 22 |
| EBITDA margin | 12.5% | 17% |
| Capital spending | 10 | 13 |
| Dividends | 7.8 | 8.7 |
Assumptions published with the 19 October 2026 affirmation. Capital spending is 13 billion riyals a year in 2027 to 2029; dividends are 7.8 billion riyals in 2027 and 8.1 billion riyals in 2028.
Leverage stays low through the disruption. The agency expects EBITDA net leverage of 0.3 times in 2026, though it forecasts EBITDA 22 percent lower. SABIC ended 2025 in a net cash position. Leverage then rises to 0.8 times in 2027 and towards 1 times by 2029. The agency links the rise to negative free cash flow from large growth projects, weak markets and dividends. Capital spending and dividends assumed for 2026 add up to 17.8 billion riyals, on our calculation. That is 4.8 billion riyals more than forecast EBITDA. In the first half, SABIC cut dividends by 27 percent to cushion the shipping disruptions.
The cushion is large. The agency puts cash and short-term investments at about 40 billion riyals at end-June, on its adjusted measure. Debt due within a year was 3.2 billion riyals. In Asia, the 6.4 billion dollar Fujian complex in China is due to be commissioned in 2027. Its cracker has an ethylene capacity of 1.8 million tonnes. Asia-Pacific supplied 48 percent of SABIC’s 2025 revenue.
Why it matters: YANSAB more than tripled its quarterly profit from a year earlier, on higher volumes and better prices for most products. SABIC Agri-Nutrients raised its profit on the second quarter. Higher shipping costs show up in its results and in the rating agency’s view of SABIC. The affirmation still keeps SABIC level with Saudi Aramco at A+, on low leverage, large scale and a cost advantage.
Outlook: SABIC’s third-quarter figures will show whether the volume recovery the agency expects has arrived. EBITDA is forecast to climb to 22 billion riyals by 2029, a 9 billion riyal step-up on 2026, on our calculation. SABIC Agri-Nutrients’ seventh project is due to start construction this quarter, and the Fujian complex follows in 2027.
Sources: YANSAB, SABIC Agri-Nutrients, Fitch Ratings, Saudi Exchange, The Edge.
