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Product category: Oil, Gas, Petrochemical Industry News
News Release from: SABIC
Edited by the Processingtalk Editorial Team on 25 July 2003

SABIC earnings in first half of 2003

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SABIC earned SR 3190 million (USD 850.6 million) in first half of 2003, an increase of 224% over the same period in 2002

Saudi Basic Industries Corporation (SABIC) today announced second quarter net profits of SR 1794 million (USD 478.4 million), compared to SR 1396 million (USD 372.2 million) in the first quarter of this year, an increase of 29 percent First half profits of SR 3190 million (USD 850.6 million) increased 224 percent over SR 985 million (USD 262.6 million) earned in the first half of 2002

Vice Chairman and Chief Executive Officer Mohamed Al-Mady announced that the increase in profits for the first half of 2003 was due to both higher product prices and volumes.

Second quarter prices stabilised, despite a slight weakness in the early part of the quarter, which was caused largely by global uncertainty as well as unsettled market conditions in much of Asia because of market reaction to the SARS outbreak.

In the first half of 2003, the company's program of continuous production improvement resulted in production of 19.6 million tons, a 10 percent increase over same period in 2002.

Sales quantity also increased 10 percent for the same period to 15.2 million tons.

Al-Mady noted that the increased volumes were due, mainly, to the addition of SABIC EuroPetrochemicals production and sales in the first half of 2003.

He added that the company also continues to benefit from the implementation of its Global Enterprise System at the company headquarters in Riyadh; at business units in Saudi Arabia; and locations in North America, Europe and Asia.

This integrated solution is already helping SABIC improve customer relations and expand its competitive capabilities in the global marketplace.

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