The board of directors of Saudi Basic Industries Corporation (SABIC) announced dividends of 1.5 billion Saudi riyals ($400 million) to company shareholders at the annual rate of five SR per share. The announcement, at SABIC’s annual general assembly meeting, stated that dividends to shareholders would be paid on May 5, 2003.
SABIC’s audited full-year 2002 results were distributed to members of the assembly and in addition to the shareholders’ dividends, it was announced that members of SABIC’s executive committee would be awarded a bonus due to the encouraging figures.
“Following the move to its new headquarters last year, this is SABIC’s first general assembly meeting in the new building. Last year was very positive for SABIC with impressive results: Production capacity increased to 40.5 million metric tons; sales volume to 29.6 million metric tons; and sales value reached SR34 billion ($9.06 billion). I am convinced that SABIC will continue to grow and develop over the coming years” said Prince Saud Bin Thunayan Al-Saud, who was recently selected as SABIC’s new chairman.
Mohamad Al-Mady, SABIC’s vice chairman and managing director summarized the financial results and added: “In 2002 we saw all parts of SABIC’s operation expand and we have made a number of notable achievements: Safety is paramount at SABIC, and I am proud to announce that we achieved 76 million man-hours without any major incidences.”
“As part of our business transformation restructure, last year saw the start of the FANAR project, which is helping to integrate the business, increase productivity and lower costs… We understand and supports Saudi Arabia’s position on Saudization, and it continues to be an important objective for us. In 2002 Saudis formed 79 percent of the company’s workforce with most non-Saudis predominantly based at SABIC’s overseas locations” he said.
The Middle East’s largest petrochemicals company, SABIC, is based in Riyadh, Saudi Arabia. It was founded in 1976, when the Saudi Arabian Government decided to use hydrocarbon gases released in the production of oil as raw material for the production of chemicals, polymers and fertilizers.
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).
SABIC’s business activities have been restructured and a new management model became effective on September 1, 2002. There are now six Strategic Business Units (SBUs): Basic Chemicals; Intermediates; Polyolefins; PVC & Polyester; Fertilizers and Metals.
SABIC has two large industrial sites in Saudi Arabia—Al-Jubail and Yanbu—with sixteen world-scale production complexes. Some of these production complexes are operated with multi-national partners such as Exxon Mobil, Shell, Fortum, Ecofuel/ENI and Mitsubishi Chemicals. In addition, SABIC has interests in three production complexes in Bahrain.
Over the last 16 years, SABIC’s overall production capacity has increased considerably. In 2002 it amounted to 40.6 million metric tons. SABIC EuroPetrochemicals owns two petrochemical production sites in Geleen (Netherlands) and Gelsenkirchen (Germany) for the production, marketing and sales of polypropylenes, polyethylenes and hydrocarbons.
They annually sell about 2.6 million tons of polymers, mainly in Europe. About 2,300 people are employed at SABIC EuroPetrochemicals. SABIC employs over 16,000 people worldwide, most of whom are based in Saudi Arabia. In 2002 SABIC posted sales of approximately SR34 billion ($9.06 billion) and a net profit of approximately SR2.84 billion ($758.4 million). — (menareport.com)
© 2003 Mena Report (www.menareport.com)
