The Saudi Basic Industries Corporation (SABIC) has reported a net profit of SAR 20.2 billion for the first nine months of 2007, an increase of 42 percent, compared to the SAR 14.2 billion net profit in the same period last year. For the third quarter (3Q) of 2007, the company reported a profit of SAR 7.4 billion, an increase of 37 percent over the 3Q-2006 profit of SAR 5.4 billion and an increase of 14% over the 2Q-2007 profit of SAR 6.5 billion.
The President of the Royal Commission for Jubail and Yanbu and SABIC Chairman, Prince Saud Ibn Abdullah Ibn Thunayan Al-Saud said: "The Company reported a SAR 29.6 billion operating profit for the last nine months of 2007 compared to SAR 21.6 billion in the same period last year, an increase of 37 percent. The profit per share price for the current period amounts to SAR 8.06 versus SAR 5.67 in the same period last year”.
SABIC Vice Chairman and Chief Executive Officer, Mohamed Al-Mady said: "Higher profits in the first nine months of 2007 reflect the improvement in the prices of most key products in line with the increase of productivity as a result of the added capacities from a number of expansion projects going on-stream. These included the ethylene glycol plant at Jubail United Petrochemical Company (UNITED), the reinforced steel plant at the Saudi Iron & Steel Company (HADEED), and urea and ammonia plants at Saudi Arabian Fertilizer Company (SAFCO). In addition we added production from the SABIC UK Company following the acquisition of Huntman’s European base chemicals and polymers business in the United Kingdom at the end of 2006.”
“SABIC’s total production during the first nine months of 2007 stood at 40.9 million metric tons, compared with 36.3 MMT in the same period last year, an increase of 13 percent. Sales rose to 32.6 MMT compared with 28.9 MMT in the same period last year, an increase of 13 percent. Revenues were SAR 86.5 billion, an increase of 36 percent over the revenues generated in the same period last year," said Al-Mady.
Corporate consolidated financial statements for the third quarter included the results of SABIC Innovative Plastics Company (SIP), which was established at the end of August 2007 after the completion of the purchase of GE Plastics for US$ 11.6 billion. The full costs of finance will be charged to the new company.