Profits of SABIC Decline 37 Percent
The net profit of the Saudi Basic Industries Co. (SABIC) for the first nine months slumped down by 37 percent, totaling a $501 million.
According to official figures, the corporation's sales rose to 6.1 billion dollars compared to 5.66 billion in 2000.
SABIC deputy chairman and managing director Mohammad Al-Madi was quoted by AFP as saying that the decline is due the "lower prices and the increased cost of raw materials."
Additional costs covering loans from the Saudi General Investment Fund also impacted on the results, he added.
SABIC was established by Royal Decree in 1976 to set up and operate hydrocarbon and mineral-based industries in the kingdom. The Public Investment Fund provides long-term loans to SABIC on highly concessional terms. The balance of SABIC's capital requirements come from SABIC's a joint venture partner. In addition, SABIC can make use of normal commercial loans. With these sources of finance, SABIC is able to undertake industrial projects considerably in excess of its own authorized capital of SR10,000 million – Albawaba.com
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