Profits of Saudi industrial giant plunge in Q1

Published April 22nd, 2001 - 02:00 GMT

The Saudi Basic Industries Co. (SABIC) said Saturday, April 21, it posted a $193-million profit in the first quarter of this year, a plunge of 21.6 percent from the same period last year, a statement said. 

 

The drop occurred despite a 35 percent increase in sales to 7.7 billion riyals (two billion dollars), SABIC deputy chairman and managing director Mohammad Al-Madi said in a statement. 

 

"The drop is essentially attributed to an increase in financing costs, and a general decline in prices because of economic recession in main markets," Madi added. 

 

SABIC, with a paid-up capital exceeding four billion dollars and total assets of more than $21 billion, has 18 giant factories in Saudi Arabia producing mainly petrochemical products. 

 

The company, which was established 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)

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