SABIC records $281 million in profits in 3Q 2002
The Saudi Basic Industries Corporation (SABIC) recorded quarterly profits of 1.1 billion Saudi riyals ($281 million), an increase of 55 percent compared with the second quarter of 2002. Profits for the year to date are $543.7 million, a nine percent increase over the same period last year.
Total sales for the first three quarters of 2002 were $6.4 billion, an increase of three percent over the same period in 2001. Following the acquisition of DSM Petrochemicals earlier this year, these figures have now been consolidated into SABIC's balance sheet. In the third quarter of the year, the SABIC EuroPetrochemicals contributed $666.6 million to total SABIC sales. This equates to roughly 10 percent.
Production in the first three quarters of 2002 has increased to 30.3 million metric tons compared with 26.3 million metric tons in the same period of 2001.
Based in Riyadh, SABIC was founded in 1976, when the Saudi Arabian Government decided to use hydrocarbon gases released in the production of oil as raw material for the production of chemicals, polymers and fertilizers. The Saudi Arabian Government owns 70 percent of SABIC shares, with the remaining 30 percent held by private investors in Saudi Arabia and other countries of the Gulf Cooperation Council (GCC).
SABIC's business activities have been restructured and a new management model became effective on 1 September. There are now six Strategic Business Units (SBUs): Basic Chemicals; Intermediates; Polyolefins; PVC & Polyester; Fertilizers and Metals. Two new divisions have been created: Global Businesses and a Shared Services organization. Supporting all these functions is a corporate core consisting Human Resources; Corporate Finance; Corporate Control and Research and Technology.
SABIC has two large industrial sites in Saudi Arabia - Al-Jubail and Yanbu – with sixteen production complexes. Some of these production complexes are operated with multi-national partners such as Exxon Mobil, Shell, Fortum, Ecofuel/ENI and Mitsubishi Chemicals. In addition, SABIC has interests in three production complexes in Bahrain. Over the last 16 years, SABIC's overall production capacity has increased considerably. In 2001 it amounted to 34.42 million metric tons. — (menareport.com)
© 2002 Mena Report (www.menareport.com)