The Saudi Basic Industries Corporation (SABIC) reported 179.4 million Saudi riyals ($478.4 million) in net profits for the second quarter of 2003, compared to SR 1396 million in the first quarter of this year, an increase of 29 percent. First half profits of SR 319 million increased 224 percent over SR 985 million earned in the first half of 2002.
Vice Chairman and Chief Executive Officer of SABIC Mohamed Al-Mady announced that the increase in profits for the first half of 2003 was due to both higher product prices and volumes. Second quarter prices stabilized, despite a slight weakness in the early part of the quarter, which was caused largely by global uncertainty as well as unsettled market conditions in much of Asia because of market reaction to the SARS outbreak.
In the first half of 2003, the company's program of continuous production improvement resulted in production of 19.6 million tons, a 10 percent increase over same period in 2002. Sales quantity also increased 10 percent for the same period to 15.2 million tons.
Al-Mady noted that the increased volumes were due, mainly, to the addition of SABIC EuroPetrochemicals' production and sales in the first half of 2003. He added that the company also continues to benefit from the implementation of its Global Enterprise System at the company headquarters in Riyadh; at business units in Saudi Arabia; and locations in North America, Europe and Asia. This integrated solution is already helping SABIC improve customer relations and expand its competitive capabilities in the global marketplace.
Sabic is the largest petrochemicals company in the Middle East. Based in Riyadh and founded in 1976, 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). — (menareport.com)
© 2003 Mena Report (www.menareport.com )