The Saudi Basic Industries Corporation (SABIC) reported preliminary consolidated net profits of SR 14.5 billion for the first six months ending June 30, 2008 compared with SR 12.8 billion in the same period in 2007, an increase of 13 percent. SABIC's share profit amounts to SR 4.82 compared with SR 4.25 for the same period last year (based on the number of the existing 3 billion shares), an increase of 13 percent. SABIC also reported preliminary consolidated operating profits of SR 23 billion for the first six months of 2008, compared with SR 19.2 billion for the same period in 2007, an increase of 20 percent.
These results are SABIC's highest-ever reported profits in one quarter. Net profits reported in this quarter amounted to SR 7.54 billion compared with SR 6.47 billion in the same period last year, an increase of 17 percent.
Mohamed Al-Mady SABIC Vice Chairman and CEO said; " The total revenues as at June 30, 2008 stood at SR 83 billion, a growth of 54 percent compared with the same period last year. This is primarily attributed to combining SABIC Innovative Plastics' results in SABIC's Financial Statements for the current period. This is in addition to the improvement of sales prices of key products, rise of the volume of production and sales by 5 and 6 percent respectively. This is despite the hike of raw materials' prices owing to the rise of oil prices and the slowdown of major economies".
"The SABIC Board of Directors, under the chairmanship of Prince Saudi bin Abdullah bin Thunayan Al-Saud, has approved the distribution of SR 5.25 billion cash dividends to the company's shareholders for the first half of 2008, at SR 1.75 per share. Date of profit eligibility for the shareholders registered in Tadawul will be the closing of trading on Wednesday July 23. Payment of dividends will take place on August 4, 2008". Al-Mady added.
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About SABICSaudi Basic Industries Corporation (SABIC) is the world's 5th largest petrochemicals company. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
SABIC's profit rose to a record SR 27 billion (US$ 7.2 billion) in 2007, a 33% increase over 2006. Sales revenues for 2007 totalled SR 126.2 billion (US$ 33.7 billion), the highest revenues achieved by the company since its inception. Total assets stood at SR 256 billion (US$ 68.3 billion) at the end of 2007.
SABIC operates six interlinked strategic business units: Basic Chemicals, Intermediates, Specialty Products, Polymers, Fertilizers and Metals. In 2007 SABIC Innovative Plastics was launched as a global manufacturer and supplier of highly engineered thermoplastics. SABIC has significant research resources and has 16 dedicated Research and Technology and application centers in the Middle East, the Americas, Europe and Asia-Pacific. The company operates in more than 40 countries across the world with over 31,000 employees worldwide.
In Saudi Arabia, the company has 20 world-scale complexes and 19 of them are located in the industrial cities of Al-Jubail and Yanbu. Some of these complexes are operated with multi-national joint venture partners such as ExxonMobil, Shell and Mitsubishi Chemicals. Elsewhere, SABIC manufactures on a global scale in more than 45 countries in the Americas, Europe and Asia Pacific. SABIC's overall production has increased from 27 million metric tons in 2001 to 55 million metric tons in 2007.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian Government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for 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 Gulf Cooperation Council countries.
Othman Al-Humaidi
General Manager,
Corporate Communications
© Press Release 2008
