RIYADH, 20 October 2004 — Saudi Basic Industries Corp. (SABIC), the Middle East’s biggest petrochemicals producer, said yesterday nine-month net profits doubled on higher world prices for its products and cost-cutting efforts.
In a statement on the company’s website, the industrial giant said it earned a SR9.56 billion ($2.55 billion) net profit in the first nine months of 2004. Third-quarter profits surged 169 percent against the same period last year to SR4.21 billion.
SABIC shares ended yesterday’s morning trading session — before the results were announced — at SR660.25, just off a year high of SR665.25 and well above a year low of SR321.
Vice Chairman and Chief Executive Officer Mohamed Al-Mady said the results reflected sharper marketing and higher world prices for its petrochemicals, fertilizers, plastics and steel. Mady said the company had also reduced expenses and improved its investment capabilities.
SABIC’s product sales volume rose 12.6 percent while revenues climbed 31 percent to SR46 billion.
SABIC, 70 percent owned by the Saudi government, controls and operates 17 complexes in Saudi Arabia, some of them in joint ventures with foreign partners. It also has partners in three ventures in neighboring Bahrain.
Two years ago it expanded into Europe, adding manufacturing complexes in the Netherlands and Germany.
SABIC is Saudi Arabia’s biggest listed firm in terms of capitalization, which stands at SR198 billion — or 21.6 percent of the entire Saudi bourse.
