SABIC net profits hit US$2.6 billion
Saudi Basic Industries Corporation (SABIC) reported 1st half 2005 net profits of SR 9.84 billion (US$2.6 billion), an increase of 84% compared to the profits in the same period last year. Second quarter 2005 reported profits were SR 4.76 billion (US$1.3 billion) compared to SR 5 billion (US$1.35 billion) profits in the 1Q2005.
SABIC Vice Chairman and Chief Executive Officer, Mohamed Al-Mady said, "These corporate operational profits reflect SABIC's sustained endeavors in managing its expenses and investing more in its capabilities to boost and optimize its production and marketing processes. This rise reflects the remarkable increase in the company’s marketing performance in parallel with the rise of global prices compared to the 1st half of last year. Despite the rise in the volume of sales, the decrease in the company’s profits in the 2Q2005 compared to the 1Q2005, is primarily attributed to the drop in the global prices of most petrochemical products. Global prices have once again started to rise from this month.
"SABIC reported 1st half 2005 revenues of SR 37 billion (US$9.87 billion) compared to SR 29 billion (US$7.73 billion) revenues in the same period last year. SABIC’s total production during the first half of 2005 stood at 22.5 million metric tons, an increase of 10% over the previous year. This follows the UNITED affiliate’s phase I going on stream, adding more than 2 million MT annually to production figures. Sales were 17.4 million metric tons, an increase of 10% over the same period last year.
“Work is now underway to implement SABIC’s expansion plans to reach an annual capacity of 60 million MT by 2008. SABIC will continue to utilize investment opportunities locally and worldwide in order to achieve the best returns for Saudi Arabia and SABIC shareholders.
It is worth mentioning that the SABIC Board of Directors at its meeting on June 6, 2005, endorsed payment of cash dividends for the 1st half 2005 at SR 8 (US$2.13) per share. This will be effective from Saturday July 23, 2005.