Profits of Saudi industrial giant plunge in Q1
The Saudi Basic Industries Co. (SABIC) said Saturday, April 21, it posted a $193-million profit in the first quarter of this year, a plunge of 21.6 percent from the same period last year, a statement said.
The drop occurred despite a 35 percent increase in sales to 7.7 billion riyals (two billion dollars), SABIC deputy chairman and managing director Mohammad Al-Madi said in a statement.
"The drop is essentially attributed to an increase in financing costs, and a general decline in prices because of economic recession in main markets," Madi added.
SABIC, with a paid-up capital exceeding four billion dollars and total assets of more than $21 billion, has 18 giant factories in Saudi Arabia producing mainly petrochemical products.
The company, which was established in 1976, posted a $968-million profit in 2000, an increase of 112 percent over the previous year. — (AFP, Riyadh)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)