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Product category: Oil, Gas, Petrochemical Industry News
News Release from: SABIC
Edited by the Processingtalk Editorial Team on 19 October 2005

Sabic profits increase 54% for Q3 2005

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Saudi Basic Industries Corporation reported net profits of SR 14.7 billion (US$3.9 billion) for the first nine months of 2005, an increase of 54% compared to the profits in the same period last year

Saudi Basic Industries Corporation (Sabic) reported net profits of SR 14.7 billion (US$3.9 billion) for the first nine months of 2005, an increase of 54% compared to the profits in the same period last year For 3Q2005, the company reported profits of SR 4.8 billion (US$1.3 billion), an increase of 2% over the 2Q2005 profits

Sabic Vice Chairman and Chief Executive Officer, Mohamed Al-Mady said, "Despite a rise in prices for raw materials of some products, due to the rise of oil prices and the remarkable increase in raw steel prices in parallel with a decrease of reinforced steel prices, Sabic was able to absorb this rise, thanks to the improvement of the global prices of most petrochemical products.

This improvement is expected to continue until next year due to balanced supply and demand, rise of energy prices, and an increase of productivity as a result of the added capacities from a number of expansion projects".

"Sabic total production during the first nine months of 2005 stood at 34.6 million metric tons, an increase of 10 percent over the production in the same period last year.

Sales were 26.9 MMT, an increase of 6 percent over last year's nine month period.

Revenues were SR 56.7 billion (US$15.1 billion) compared to SR 47.1 billion (US$13 billion) revenues in the same period last year, an increase of 20 percent".

Mr Al-Mady praised the efforts exerted by all Sabic employees as well as the cooperation of partners and shareholders.

Mr Al-Mady wished all every success and encouraged sustained efforts to meet the shareholders' expectations and enhance the company's competitive capabilities in the global markets and achieve its leadership ambitions.

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