RIYADH, 26 January 2003 — The Saudi Basic Industries Corporation (SABIC) announced a 60-percent rise in net profits to SR2.844 billion ($758.4 million) for 2002 yesterday.
Releasing its fourth quarter and full year results for the year 2002, the 60 percent increase over the 2001 profits, indicated strong growth of this largest petrochemical company of the Middle East. The SABIC’s quarterly profits amounted to SR806 million ($214.93 million).
Total sales for the year 2002 were SR34 billion compared to SR29 billion a year before, an increase of 18 percent. Commenting on SABIC’s financial results, Vice Chairman and Managing Director Mohamed Al-Madhi said that “an increase in sales and the stability of petrochemical prices have contributed to these encouraging results, and I expect this trend to continue during the first quarter of 2003.”
He said production during the same period rose to 40.6 million metric tons compared to 35.4 million metric tons in 2001, an increase of 14.7 percent.
“The acquisition of DSM Petrochemicals, our restructuring drive, our business transformation project (FANAR) and the closure of a number of major long-term contracts have all helped played a role in these successful results,” he said.
Al-Madhi said that “our 25th anniversary year has seen SABIC undergoing tremendous changes as we continue toward our vision of becoming a leader in the global petrochemical industry.”
“I would like to thank all SABIC employees, the chairman of the SABIC’s board and also my board members for their continuous support,” said the managing director.
SABIC is the Middle East’s largest petrochemical company. It was founded in 1976, when the Saudi government decided to use hydrocarbon gases released in the production of oil as raw materials for the production of chemicals, polymers and fertilizers. The government owns 70 percent of SABIC shares, with the remaining 30 percent is held by private investors in Saudi Arabia and other GCC countries.
SABIC’s business activities have been restructured and a new management model became effective on Sept. 1, 2002. SABIC has two large industrial sites in Jubail and in Yanbu with 16 world-scale production complexes. Some of these production complexes are operated with multinational partners such as Exxon Mobil, Shell, Fortum, Ecofuel/ENI and Mitsubishi Chemicals.
In addition, SABIC has interests in three production complexes in Bahrain. Over the last 16 years, SABIC’s overall production capacity has increased considerably. In 2001 it amounted to 35.4 million metric tons. The SABIC EuroPetrochemicals owns two petrochemical production sites in Geleen (Netherlands) and in Gelsenkirchen (Germany) for the production, marketing and sales of polypropylenes, polyethylenes and hydrocarbons.
