SABIC profits for 2007 hit unprecedented SR27 billion

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The Saudi Basic Industries Corporation (SABIC) reported profits for its operations during 2007, amounting to SAR 27 billion, compared to SAR 20.3 billion in 2006, an increase of 33 percent. These profits included SABIC Innovative Plastics’ results for the last 4 months of 2007.  According to preliminary results of the fiscal year ending December 31, 2007, the operating profits stood at SAR 41 billion compared to SAR 31 billion in 2006, an increase of 32 percent.

Prince Saud Ibn Abdullah Ibn Thenayan Al-Saud, Chairman of SABIC said: “The increase in profits was in parallel with an increase in profit per share to SAR 10.81 compared to SAR 8.12 last year. This increase occurred due to a 15 percent increase in sales and the rise of global prices of key products.”

“The company’s net profits reported for the 4Q 2007 amounted to SAR 6.87 billion compared to SAR 6.12 billion in the same period last year, an increase of 12 percent.”

The Prince lauded the efforts of the members of the board as well as all SABIC and affiliates’ employees, the collaboration of shareholders, customers and suppliers.

The SABIC board, at its recent meeting, decided to recommend to the General Assembly at its meeting scheduled for end of March 2008 to approve increasing the company’s capital  from SAR 25 billion to SAR 30 billion by granting one bonus share for each 5 shares and distribution of cash dividends at SAR 2 for each one share for the 2Q 2007. Eligibility will be for the owners of shares registered in “Tadawul” on the closing of the business day of the General Assembly’s meeting.

SABIC’s profit rose to a record SR 20.3 billion (US$ 5.4 billion) in 2006, a 6 percent increase on 2005. Sales revenues for 2006 totalled SR 86.3 billion (US$ 23 billion), the highest revenues achieved by the company since its inception.  Current assets at the end of 2006 were SR 74 billion (US$ 19.7 billion).