SABIC maintains outstanding levels of operations despite economic crisis

20 Jul '09

3 min read

The Saudi Basic Industries Corporation (SABIC), reports its consolidated financial results for the period ended on June 30, 2009, as follows:

1. The net income for the quarter ended June 30, 2009 amounted to SR 1.8 billion, compared to the net income of SR 7.5 billion for the same quarter in 2008, a decline of 76 percent, and compared to the net loss of SR 974 million in the previous quarter ended March 31, 2009.
2. The gross profit for the quarter ended June 30, 2009 was SR 6.2 billion compared to SR 14.8 billion for the same quarter in 2008, a decline of 58 percent.
3. The income from main operations for the quarter ended June 30, 2009 was SR 4.1 billion compared to SR 12.1 billion for the same quarter in 2008, a decline of 66 percent.
4. The net income for the six months ended June 30, 2009 amounted to SR 830 million, compared to the net income of SR 14.47 billion for the same period in 2008, a decline of 94 percent.
5. The earnings per share (EPS) during the six months ended June 30, 2009 was SR 0.28 compared to EPS of SR 4.82 during the same period in 2008.
6. The gross profit for the six months ended June 30, 2009 was SR 9.84 billion compared to SR 28.64 billion for the same period in 2008, a decline of 66 percent.
7. The income from main operations for the six months ended June 30, 2009 was SR 4.46 billion compared to SR 23.03 billion for the same period in 2008, a decline of 81 percent.

The decline of the net income for the quarter ended June 30, 2009 compared to the same quarter of 2008 is due to the sharp decline in the prices of petrochemicals, plastics and metals owing to the global financial and economic crises. Corporate income remarkably improved compared to the income in the first quarter of 2009 due to improvement in prices of some products.

Mr. Mohamed Al-Mady, SABIC Vice Chairman and CEO said, “SABIC has maintained outstanding levels of operations despite the global financial and economic crises. SABIC's total production volume during the first half of 2009 reached 28.5 million tons, reflecting an increase of 1 percent, while total quantity sold reached 22.9 million tons, an increase of 2 percent over the same period last year”.

“SABIC's strong financial position, its ability to generate strong cash flows, and the continued efforts to reduce costs, optimize operational efficiencies, and maintain high utilization rates together with the new production capacities coming on-stream at YANSAB and SHARQ will have a positive impact on its performance and corporate results in the coming quarters. SABIC's investment in China with Sinopec will profitably further enhance our footprint in the fast growing Chinese market”, Al-Mady added.

SABIC

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