Rabigh‘s F12/26 2Q Results: Better Than Expected

Research evidence excerpt

Rabigh‘s F12/26 2Q Results: Better Than Expected

Update

July 27, 2026 08:20 AM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MSumitomo Chemical (4005) | Japan Takato Watabe

Equity Analyst

Rabigh's F12/26 2Q Results: Takato.Watabe@morganstanleymufg.comRyoichi Watanabe +81 3 6836-5436

Ryoichi.Watanabe@morganstanleymufg.com +81 3 6836-8929

Better Than Expected Kayoko Shoji

Research Associate

Kayoko.Shoji@morganstanleymufg.com +81 3 6836-5437

Key Takeaways Kano Fujita

Petro Rabigh's 2Q OP and NP exceeded 1Q levels Kano.Fujita@morganstanleymufg.com +81 3 6836-8932

A sharp upturn in refining margins in April contributed sharply to the earnings

improvement.

Recently, refining margins have improved again, raising the possibility that 3Q

profit could exceed 2Q levels.

Sumitomo Chemical (4005.T, 4005 JT)

Upturn in refining margins played a key role: At around 8:05am local time on Jul Petrochemical Majors | Japan

27 (around 2:05pm JST), affiliate Petro Rabigh (PRC; Sumitomo Chemical currently Stock Rating Overweight

Industry View Attractive

owns a 15.0% stake, down from 37.5% through Sep 2025) announced F12/26 2Q Price target ¥850

(Apr-Jun) results. PRC reported 2Q OP of SAR 3,023mn, remaining in the black (vs. Shr price, close (Jul 27, 2026) ¥545

Mkt cap, curr, basic (bn) ¥891.1

SAR 1,793mn profit in 1Q and a SAR 1,104mn loss in F12/25 2Q), representing a major Avg daily trading value (bn) ¥6.3

improvement both QoQ and YoY. On a YoY basis, profitability improved sharply as

utilization rates rose following major scheduled maintenance in the year-earlier

period. Expanding refining margins and improved petrochemical segment

profitability also helped the company return to black ink. QoQ, higher refining

margins and stronger petrochemical market conditions expanded profits further. 2Q