Riyadh, April 18, SPA -- SABIC's General Assembly held a meeting recently under the chairmanship of Prince Saud Ibn Thenayan Al-Saud, Chairman of the Royal Commission for Jubail and Yanbu, and Chairman of the SABIC Board of Directors.

The General Assembly approved payment of SR 9 billion in dividends to shareholders, at SR 3 per share for its operations in 2008.

The company had distributed dividends to shareholders for the first half of 2008, at SR 1.75 per share. Eligibility of the 2nd half of dividends at SR 1.25 shall be for shareholders listed on Tadawul (Saudi Stock Exchange) records as at the end of trading on the date of the General Assembly's meeting.

The General Assembly also approved the Board of Directors' report for the fiscal year ending December 31, 2008; the SABIC final accounts and auditors' report for the same fiscal year; the Board of Directors' remunerations for the fiscal year; holding the Board of Directors free from any liabilities for the same year; allocation of 10% from profits to the statutory reserve; addition of remaining profits to the general reserve; approval of the recommendation of the audit committee for the selection of an external auditor to audit SABIC's 2009 quarterly and annual accounts; approval to determine the fees for the independent auditor for the fiscal year 2009, and to provide legal guarantee to the Saudi Industrial Development Fund in exchange for the loan granted to Ma'aden Phosphate Company not exceeding SABIC's share in Ma'aden's ownership and the approval of the scope of the work of nominations and remunerations.

In his remarks, Prince Saud Bin Thenayan Al-Saud praised the proactive interaction of SABIC's shareholders on corporate development objectives and leadership ambitions.

He pointed out that the company's increasing success is the result of integrated and combined efforts of the board, executive management, employees, shareholders, customers and suppliers. "Such efforts enable SABIC to strongly face the challenges arising of the global economic crisis," he was quoted as saying in a press release issued by SABIC.

The Prince said that SABIC continues development of revenues and returns of operations with an average growth of profits in the last five years of 34 percent, average sales growth of 28 percent and average growth of assets of 21 percent. Assets increased to SR 272 billion by end of 2008. This confirms the strength of the company's financial position and its ability to fulfill its obligations. SABIC has succeeded in maintaining a strong credit rating whilst many large competitors have been forced to restructure operations, close down some production units and demobilize considerable human resources.

Prince Saud Bin Thenayan Al-Saud outlined that SABIC has developed plans to meet the repercussions of the global economic crisis through a number of decisions. "These aim at increasing its share in global markets and bolstering closer relationships with customers to expand and modernize supply and logistics operations, enhancing scientific and technical research and adding more new innovative products that attract more advanced industries and achieve higher added value.

Mohamed Al-Mady, SABIC Vice Chairman and CEO, casted further light on the achievements of the company during the past year in the areas of production, marketing, revenue and profitability.

He highlighted the company's efforts to double national contributions and promote competitiveness in world markets.

He indicated that the results of the company in 2008 were excellent despite the deteriorating global demand for petrochemical products in general, plastic products and steel, in particular.

Al-Mady reiterated that SABIC enjoys a sound financial position as a result of diversity of products and wide geographical spread, as well as skilled talent and focus on research and development.

Al-Mady added that SABIC succeeded in securing full funding for its projects at competitive prices in ample time prior to the economic crisis. Despite the complexities of banking procedures, SABIC has been able to take a series of measures and actions to reduce costs without impacting the continuance of operations or product quality.

© Saudi Press Agency 2009