The Saudi Basic Industries Co. (SABIC) issued a statement Sunday, October 21, indicating that its net profit for the first nine months of the current year totaled $501 million, a plunge of 37 percent as compared to the same period the previous year, AFP reported.
Vice Chairman and Managing Director Mohamed H. Al-Mady believes the decrease in the company’s earnings is a result of the current market downturn, which produced lower prices for most of SABIC’s products. He also blamed the loss of profit on the high prices of feedstock and the shortage of ethane.
SABIC completed a major phase of plant expansions last year, and its additional production is being marketed this year. Al-Mady revealed that SABIC’s production had increased 25 percent to 17.1 million metric tons during the half-year period, enabling it to achieve the sharply higher sales revenues. Sales tonnage increased by 26 percent during the period, to 13 million metric tons.
The company posted a $968-million profit in 2000, an increase of 112 percent over 1999. According to official figures, the corporation's sales rose to $6.1 billion compared to $5.66 billion in 2000.
Saudi giant SABIC, established in 1976, has 18 factories throughout the kingdom, producing mainly petrochemicals. It has a paid-up capital exceeding four billion dollars and total assets of more than $21 billion. — (Mena Report)
© 2001 Mena Report (www.menareport.com)
