SABIC financial results announced at a press conference at its headquarters in Riyadh
Al-Mady confirms that the reliability of the company's performance and increase in sales contribute to continued growth
Saudi Basic Industries Corporation (SABIC) announced today, October 17, 2011 at a press conference held at its headquarters in Riyadh, its financial results for the third quarter of 2011. SABIC achieved SR 8.2 billion in net profit for the 3Q2011. These are another record result in the history of the company, for this quarter ended on 30 September, 2011.
During the press conference, Mohamed Al-Mady, SABIC Vice Chairman and CEO, emphasized that SABIC has achieved positive results in the third quarter and maintained its pace of growth based on the reliability of its performance and sound operations. This has been achieved thanks to the efforts of SABIC employees and recent programs that have transformed SABIC into an integrated global company.
Al-Mady also attributed the positive results to increased production and sales, as well as to the reduced cost of funding. He also gave credit to the diversity of SABIC's markets, and its strong presence in global production hubs, especially in the markets of developing economies such as China, India and Saudi Arabia. In these markets, it has maintained its competitive position and continued to succeed and grow.
Al-Mady highlighted that the diversity of SABIC products reduce market risks considerably. SABIC produces steel, fertilizers, innovative and advanced engineering thermoplastics, polymers, and added value performance chemicals. SABIC also benefits from a stable economic situation in the Kingdom. Thanks to these and other factors, growth plans and projects are moving forward according to the company's strategy.
Al-Mady added that SABIC continues to grow and invest. It has new projects in place for the period of 2012 -2015. With regards to prospects for growth, Al-Mady pointed out that SABIC continues to expand its performance chemicals production line to manufacture a range of specialty chemicals that will drive the growth of downstream markets in Saudi Arabia and abroad. Strategic agreements have also recently been reached with several partners. This includes SABIC's agreement with Sinopec for the production of 260K tons of polycarbonate, as well as agreements with Mitsubishi Rayon, Montefibre, Exxon Mobil, Lurgi and Asahi to produce chemicals such as methacrylates, polymethyl methacrylates, carbon fiber, elastomers and sodium cyanide.
Al-Mady said: "SABIC's business is based on the reliability of high capacity operations that maintain operational safety. The company has a strong commitment to being reliable in all its operations. The challenges of the marketplace, the existing global economic volatility and operational challenges are things that SABIC takes into account and deals with accordingly".
Al-Mady assured that the positive results for the third quarter of 2011 are a natural result of the continued growth experienced over the last two quarters of the same year. The company has continued to step up its production capacities in its different businesses. The SAUDI KAYAN petrochemical complex in Jubail Industrial City started its commercial operations in early October. Its financial results will be included within the company's consolidated results in the last quarter of 2011.
SABIC has continued to improve its operations in order to fulfil its commitment to sustainability and its efforts of environmental preservation. It has also made great strides in the repositioning of its global brand and on the brand's activation project, and has also continued to invest in programs that support research, technology, innovation and the development of human resources. All of these factors have qualified the company to have recently won a Stevie Award for the Chemical Company of the Year in 2011. In addition, SABIC has also topped the list of Forbes' top 100 companies worldwide.
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About SABIC
Saudi Basic Industries Corporation (SABIC) ranks among the world's top petrochemical companies. The company is among the world's market leaders in the production of polyethylene, polypropylene and other advanced thermoplastics, glycols, methanol and fertilizers.
SABIC recorded a net profit of SR 21 billion (US$ 5.6 billion) in 2010. Sales revenues for 2010 totaled SR 152 billion (US$ 40.5 billion). Total assets stood at SR 317 billion (US$ 84.5 billion) at the end of 2010.
SABIC's businesses are grouped into Chemicals, Polymers, Performance Chemicals, Fertilizers, Metals and Innovative Plastics. SABIC has significant research resources with 18 dedicated Technology & Innovation facilities in Saudi Arabia, the USA, the Netherlands, Spain, Japan, India and China. The company operates in more than 40 countries across the world with 33,000 employees worldwide.
SABIC manufactures on a global scale in Saudi Arabia, the Americas, Europe and Asia Pacific. SABIC's overall production has increased from 35 million metric tons in 2001 to 66 million metric tons in 2010.
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.
Samir Al-Abdrabbuh
Vice President,
Corporate Communications
© Press Release 2011
