Saudi Peroxide Plant Shutdown Reduces Solvay's Third-Quarter Profit by Nearly €15 Million

en.Wedoany.com Reported - On October 19, Belgian chemical group Solvay released its preliminary results for the third quarter of 2026, disclosing that the continued shutdown of its peroxide production unit at the Sadara chemical complex in Jubail, Saudi Arabia, reduced underlying EBITDA by nearly €15 million in the quarter. Affected by business disruptions in the Middle East and other factors, the group's third-quarter underlying EBITDA was negatively impacted by approximately €25 million in total, with the related impact in the second quarter amounting to approximately €20 million.

Solvay's peroxide business in Jubail operates through a joint venture with Sadara Chemical Company, which is controlled by Saudi Aramco. The company said the joint venture agreement includes a compensation mechanism for profit losses, and it is currently exploring contractual arrangements to mitigate the financial impact of the continued plant shutdown.

According to preliminary financial data, Solvay's third-quarter underlying net sales were €1.03 billion, underlying EBITDA was €173 million, and free cash flow from continuing operations attributable to shareholders was €54 million. The group revised its full-year 2026 underlying EBITDA guidance downward from the previous range of €770 million to €850 million to a range of €720 million to €740 million, and also lowered its full-year free cash flow guidance from at least €200 million to €120 million to €150 million.

The adjusted full-year forecast does not yet factor in any revenue or compensation that may be received from the Sadara joint venture during the remainder of 2026. Solvay plans to officially release its full third-quarter results on November 4.