SABIC Q4 net profit rises 11.3% to SR 5.83 billion

Updated 19 January 2013
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SABIC Q4 net profit rises 11.3% to SR 5.83 billion

Saudi Basic Industries Corp. (SABIC) has posted an 11.3 percent rise in fourth quarter net profits.
SABIC said it enjoyed stronger sales and higher prices in the fourth quarter than it had in the year-earlier period.
The net income of for the fourth quarter ended Dec. 31, 2012 was SR 5.83 billion, compared to the net income of SR 5.24 billion for the same quarter in 2011, an increase of 11.3 percent, and compared to the net income for the third quarter of 2012 of SR 6.31 billion, a decrease of 7.6 percent. This is according to SABIC’s announcement of its interim consolidated financial results for the period ended Dec. 31, 2012.
The other highlights of the results are as follows:
The gross profit for the fourth quarter ended Dec. 31, 2012 amounted to SR 13.88 billion, compared to the same quarter in 2011 of SR 13.37 billion, an increase of 3.8 percent.
The income from operations for the quarter ended Dec. 31, 2012 amounted to SR 10.22 billion, compared to SR 9.51 billion for the same quarter in 2011, an increase of 7.5 percent.
The net income for the 12-month period ended Dec. 31, 2012 amounts to SR 24.72 billion compared to the net income of SR 29.24 billion for the same period in the preceding year, a decrease of 15.5 percent.
The earnings per share for the twelve-month period ended Dec. 31, 2012 amounted to SR 8.24, compared to SR 9.75 for the same period in 2011.
The gross profit for the 12-month period ended Dec. 31, 2012 was SR 54.31 billion, compared to SR 62.13 billion for the same period in 2011, a decrease of 12.6 percent.
The income from operations for the 12-month period ended Dec. 31, 2012 was SR 40.94 billion, compared to SR 48.84 billion for the same period in 2011, a decrease of 16.2 percent.
The increase in net income for the fourth quarter ended Dec. 31, 2012 compared to the same quarter in 2011 is attributable to higher sales volumes and sales prices for certain products.
The decrease in net income for the 12-month period ended December 31, 2012 compared to the same period in 2011 is due to higher cost of sales and lower sales prices for certain products, despite higher sales and production volumes and reduction in financial charges.
The decrease in net income for the fourth quarter ended Dec. 31, 2012, compared to the third quarter is attributable to higher cost of sales, as well as lower other income related to the recording of polycarbonate licensing gains in the third quarter, despite improvement in sales prices of certain products.
Commenting on the financial results, Prince Saud bin Abdullah bin Thunayan, chairman of SABIC and the Royal Commission of Jubail & Yanbu said: “SABIC continues to improve its operations and manufacturing processes, while maintaining the highest safety standards, with full commitment to sustainability.”
He said SABIC will continue to excel in performance, grow its production capacities and seek to maintain its level of competitiveness despite the prevailing global economic conditions.
The board of directors of the company has approved the recommendations of its general assembly to distribute a cash dividend for the second half of 2012 amounting to SR 9 billion, at a rate of SR 3 per share.
An interim cash dividend amounting to SR 6 billion was distributed to the company’s shareholders for the first half of 2012, bringing the total profit to shareholders to SR 15 billion for 2012, at the rate of SR 5 per share, representing 50 percent of face value of the shares.
Shareholders registered with the company on the day of the general assembly meeting, which is scheduled to be held in the second half of April 2013, will be eligible for the dividends of the second half of the year.


Malaysia sets up task force to probe 1MDB scandal

Updated 35 min 44 sec ago
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Malaysia sets up task force to probe 1MDB scandal

  • 1Malaysia Development Berhad was set up in 2009 ostensibly to promote the development of the Malaysian economy
  • Huge sums of money from the fund are believed to have been funneled round the world in a complex web of transactions

KUALA LUMPUR: Malaysia on Monday set up a task force to probe allegations that billions of dollars were looted from sovereign wealth fund 1MDB in an audacious fraud overseen by ousted leader Najib Razak.
New Prime Minister Mahathir Mohamad led a reformist alliance to a shock victory at the May 9 polls over Najib’s coalition, which had governed Malaysia uninterrupted for over six decades.
A major reason for the success of 92-year-old Mahathir was public disgust at allegations of endemic corruption among the country’s ruling elite, and in particular an explosive scandal surrounding state fund 1MDB.
The fund, 1Malaysia Development Berhad, was set up in 2009 ostensibly to promote the development of the Malaysian economy.
But it is alleged that Najib, his family and cronies looted the investment vehicle in a massive fraud stretching from the Cayman Islands to New York, with stolen funds used to buy everything from real estate to artworks.
Since Najib’s ouster, Malaysians have been gripped by a series of police raids on properties linked to the ex-leader, which have yielded a stash of hundreds of luxury handbags believed to belong to his despised wife Rosmah Mansor, as well as suitcases stuffed with cash and jewels.
Mahathir — who first served as premier from 1981-2003 and came out of retirement to take on Najib — had pledged to reopen probes into 1MDB.
The new task force will be charged with seizing back assets and pursuing legal action against those suspected of breaking the law in relation to the fund, said the prime minister’s office.
“The government hopes the setting up of this task force, comprising a multi-agency enforcement unit, will help restore the dignity of Malaysia that has been tainted by the 1MDB kleptocracy scandal,” said Mahathir’s office.
The task force will include representatives of the anti-graft agency, the police and the attorney-general’s office. Some of those on the body were part of previous probes into the controversy but were pushed out by Najib’s regime as he moved to shut down domestic investigations.
Several current and former senior government officials will lead the task force, including Abdul Gani Patail, the former attorney-general who was removed from his post in 2015 as he was leading investigations into 1MDB.
Huge sums of money from the fund are believed to have been funneled round the world in a complex web of transactions, and the task force’s remit will include reaching out to law enforcement agencies in other countries, including the US, Switzerland, Singapore and Canada, according to Mahathir’s office.
The US Statement Department alleges in civil lawsuits that $4.5 billion was stolen from 1MDB and sent to the US, where it was spent on funding the Hollywood film “The Wolf of Wall Street” and lavish purchases including Monet and Van Gogh paintings.
Najib and 1MDB have consistently denied any wrongdoing.
The ex-leader, 64, sought to mount a fightback over the weekend, insisting he had not stolen any public money during a speech to hundreds of supporters in the constituency where he has been an MP for decades.
Mahathir, a former mentor of Najib who turned on him over 1MDB, is determined to breathe new life into democratic institutions that suffered under the ex-premier’s increasingly authoritarian rule and usher in a new dawn for the country.
In a speech to civil servants Monday, Mahathir said that Malaysia’s debt had ballooned to more than one trillion ringgits ($251 billion).
“We must realize that before our country was respected, but now it is no longer respected,” he said.