SABIC profits up

Saudi Basic Industries Corporation (SABIC), reports first quarter 2008 (1Q08) profits of 6.92 billion Saudi Riyals, compared with 6.28 billion Saudi Riyals 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 1Q08 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.”