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23 Apr 2008  -  Saudi Arabia

SABIC reports first quarter 2008 results

Saudi Basic Industries Corporation (SABIC), reports first quarter 2008 profits of 6.92 billion Saudi Riyals (USD 1.84 billion), compared with 6.28 billion Saudi Riyals (USD 1.67 billion)for the same period in 2007, an increase of 10 percent. The company’s share profit amounts to 2.31 Saudi Riyals, compared with 2.10 Saudi Riyals for the same period in 2007. The company’s capital has been increased from 25 billion Saudi Riyals (2.5 billion shares), to 30 billion Saudi Riyals (3 billion shares), as approved by the Extraordinary General Assembly Meeting on March 29, 2008. The initial operating profits for first quarter 2008 amount to 10.89 billion Saudi Riyals, compared with 9.56 billion Saudi Riyals for the same period in 2007, an increase of 14 percent. This rise in profits is due to an increase in prices of most of the key products and as a result of increased production and sales by 6 percent and 4 percent respectively.

Mohamed Al-Mady, Vice Chairman and CEO said, “I can confirm that SABIC’s global business is growing to achieve our corporate strategic objectives, in spite of increased feedstock prices and an economic slow-down in the United States marketplace and to some extent in Europe. Despite this, SABIC has achieved positive results thanks to the Asian markets and in particular China.”

About SABIC
Saudi Basic Industries Corporation (SABIC) is one of the world’s 10 largest petrochemicals manufacturers. The company is among the world’s market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
   SABIC’s profit rose to a record SR 27 billion (US$ 7.2 billion) in 2007, a 33% increase over 2006. Sales revenues for 2007 totalled SR 126.2 billion (US$ 33.7 billion), the highest revenues achieved by the company since its inception. Total assets stood at SR 256 billion (US$ 68.3 billion) at the end of 2007.
   SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Specialty Products, Polymers, Fertilizers and Metals. In 2007 SABIC Innovative Plastics was launched as a global manufacturer and supplier of highly engineered thermoplastics. SABIC has significant research resources and has 16 dedicated Research and Technology and application centers in the Middle East, the Americas, Europe and Asia-Pacific. The company operates in more than 40 countries across the world with over 31,000 employees worldwide.    In Saudi Arabia, the company has 20 world-scale complexes and 19 of them are located in the industrial cities of Al-Jubail and Yanbu. Some of these complexes are operated with multi-national joint venture partners such as ExxonMobil, Shell and Mitsubishi Chemicals. Elsewhere, SABIC manufactures on a global scale in more than 45 countries in the Americas, Europe and Asia Pacific. SABIC’s overall production has increased from 27 million metric tons in 2001 to 55 million metric tons in 2007.
   Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70 percent of SABIC shares with the remaining 30 percent held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.

Source : SABIC