Saudi industrial giant posts 27 percent fall in H1 profits
Saudi Basic Industries Co. (SABIC) posted a $400-million profit in the first half of 2001, down 27.1 percent from the same period of last year, the company announced Saturday, July 21.
The decline came despite a 33-percent increase in sales to 16 billion riyals ($4.26 billion), from 12 billion riyals ($3.2 billion) last year, SABIC deputy chairman and managing director Mohammad Al-Madi said.
"The drop is attributed to a decline in the prices of most products and to a rise in the costs of raw materials," Madi explained in a statement.
The company said production was up 25 percent at 17.1 million tons and sales jumped 26 percent to 13 million tons, compared to the first six months of 2000.
SABIC, with paid-up capital of four billion dollars and total assets of more than $21 billion, has 18 factories in Saudi Arabia mainly for petrochemical products.
The industrial giant, founded in 1976, posted a $968-million profit in 2000, an increase of 112 percent over the previous year. ― (AFP, Riyadh)
© Agence France Presse 2001
© 2001 Mena Report (www.menareport.com)