SABIC net income down by 50 percent
The Saudi Basic Industries Corporation (SABIC) reports preliminary consolidated financial results for the period ended September 30, 2009.
1. The net income for the third quarter 2009 was SR 3.6 billion, compared to net income of SR 7.2 billion in the same period last year, a decline of 50 percent and compared to SR 1.8 billion for the previous quarter, a rise of 100 percent.
2. The gross income for the third quarter was SR 8.6 billion compared to SR 15.9 billion for the same quarter last year, a decline of 45 percent.
3. The income from operations for the third quarter was SR 6.4 billion compared to SR 12.5 billion in same period last year, a decline of 48 percent.
4. The net income during nine months is SR 4.5 billion compared to SR 21.7 billion for the same period last year, a decline of 79 percent.
5. The profit per share during the nine months amounts to SR 1.49 compared to profit per share of SR 7.24 in the same period last year.
6. The gross income during nine months is SR 18.4 billion compared to SR 44.5 for the same period last year, a decline of 58 percent.
7. The income from operations for the nine months is SR 10.8 billion compared to SR 35.6 billion for the same period last year, a decline of 69 percent.
8. The reason for the decline of net income during the third quarter compared to the same quarter last year is due to the sharp decline in the global prices of petrochemical, plastic and metal products as a result of the global recession and economic crisis.
The net income during the third quarter has increased by twofold compared to the previous quarter of this year due to the steady rise of most of petrochemical, plastic and metal prices as a result of improved demand.
Mohamed Al-Mady, SABIC Vice Chairman and CEO, said: “In spite of repercussions arising from the global economic crisis, SABIC has maintained the same operational levels. SABIC’s total production during the first nine months of 2009 reached 44 million tons, an increase of 4 percent, while quantities sold were 34.5 million tons, an increase of 3 percent over the same period last year.
Al-Mady added that certain factors will have a positive impact on SABIC’s performance and financial results such as; its healthy financial position; its ability to generate strong cash flows; its continuing efforts and plans to reduce costs; its increased production capacities through current expansions in YANSAB (which started production at its complex in Yanbu), SHARQ, SAUDI KAYAN; and with the joint venture with “SINOPEC” in China.