SABIC Posts SR20.02b Profit for First 9 Months

Wednesday, 24 October 2007
By Adel Al-Malki
RIYADH - The Saudi Basic Industries Company (SABIC) reported a SR20.02 billion profit during the nine months to September this year. The figure represents a 42 percent increase from the same period last year.
"SABIC's total production during the first nine months of 2007 stood at 40.9 million metric tons (mmt), compared with 36.3 mmt in the same period last year, an increase of 13 percent," said SABIC deputy board chairman Mohammed Al-Madhi. "Sales rose to 32.6 mmt compared to 28.9 mmt in the same period last year, an increase of 13 percent. Revenues were SR86.5 billion, an increase of 36 percent over the revenues generated in the same period last year," he said.
Corporate consolidated financial statements for the third quarter included the results of SABIC Innovative Plastics Company, which was established at the end of Aug. 2007 after the completion of the purchase of GE Plastics for $11.6 billion.
The full costs of the financing will be transferred to the new company.
The company also reported sales of 32.6 million tons this year compared to 28.9 million tons in the same period last year.
Al-Madhi also said the company's strong showing was a result of improvement in product pricing and expansion projects with the entry of ethylene plant Gelykol (United), iron rods factory (Iron) and the urea and ammonia factories (SAFCO).