May 4 (Reuters) - Saudi chemicals giant SABIC (2010.SE) , opens new tab on Sunday reported a first-quarter net loss of 1.21 billion Saudi riyals ($323 million), citing a rise in operating costs and high feedstock costs.

That compared to a profit of 0.25 billion riyals in the same period last year.

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The chemicals industry has been grappling with weak demand and high input costs, leading to lower prices and squeezed margins.

SABIC in February said it planned to cut costs and find new investment opportunities, after reporting worse than expected fourth-quarter results.

CEO Abdulrahman Al-Fageeh on Sunday pointed to ongoing challenges in the global economy including the slowdown in global GDP.

"The oversupply in production capacity of petrochemicals still causes a challenge," he said at a press conference.

Results were impacted by an increase in operating expenses driven by a non-recurring cost of 1.7 billion Saudi riyal ($453.22 million) related to a strategic restructuring initiative, said SABIC in a statement.

"Restructuring is ongoing, but this last one was on a bigger scale for a bigger impact," al-Fageeh said, adding that he expected the restructuring would be complete this year.

Losses were also impacted by a 1.05 billion riyals decline in gross profit driven by higher feedstock prices, SABIC said.

The company reported sales of 34.59 billion riyals in the first quarter, a 5.8% increase from 32.69 billion riyals a year earlier.

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($1 = 3.7509 riyals)

https://www.reuters.com/world/middle-east/saudi-chemicals-group-sabic-reports-q1-net-loss-323-million-2025-05-04/