Despite adverse conditions SABIC posts increase in net profits

21 Oct '08

2 min read

The Saudi Basic Industries Corporation (SABIC) has reported net preliminary consolidated profits of SAR 21.71 billion for the first nine months of 2008, an increase of 8 percent, compared to the SAR 20.16 billion net profit in the same period last year.

Profit per share is SAR 7.24 compared to SAR 6.72 in the same period last year (based on the number of existing shares of 3 billion), an increase of 8 percent.

SABIC has also reported consolidated preliminary operating profits of SAR 35.58 billion for the third quarter (3Q) of 2008, compared to SAR 29.64 billion in the same period last year, an increase of 20 percent over the 3Q-2007.

This increase is due to an improvement in the prices of most key products in line with an increase of volume of productivity and sales by 4 percent and 3 percent respectively. 3Q2008 reported net profits of SAR 7.24 billion compared to SAR 7.39 billion for the same quarter last year, a decrease of 2 percent.

SABIC Vice Chairman and Chief Executive Officer, Mohamed Al-Mady said: “There is no impact on SABIC's financial operations as a result of the existing financial crisis.

Loans necessary to finance projects buildup and existing expansions have been completed in ample time prior to the start of the current crisis. However, the expected global recession may lead to a decline in demand for products in most of the international markets.”

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