JEDDAH, 22 January 2007 — The Saudi Basic Industries Corp. (SABIC) announced yesterday that it made a record net profit of SR20.3 billion in 2006 compared to SR19.2 billion in the previous year, registering a six percent increase.

“This is the highest profit achieved by the company since its inception,” SABIC’s Chairman Prince Saud ibn Thunayan said in a statement, adding that the profit increased earning per share of the company to SR8.13 against SR7.66 in 2005. SABIC shares fell slightly yesterday to close at SR94.25. However, the Saudi stock market recovered. The Tadawul All-Share Index (TASI) gained 19.84 points to close at 7,163.83.

SABIC also reported record operating profits, production, sales and revenues. The total operating profits amounted to SR35.3 billion compared to SR33.1 billion in 2005 with an increase of seven percent.

The total production of SABIC’s manufacturing complexes reached 49.1 million tons in 2006 compared to 46.7 million tons in 2005, an increase of five percent, Prince Saud said. “A total of 38.5 million tons was marketed in 2006 compared to 36.6 million tons, an increase of five percent over 2005. Sales revenues hit SR86.5 billion compared to SR78.3 billion in 2005, an increase of 11 percent.

The results of 4Q2006 showed net profits amounting to SR6.1 billion compared to SR4.5 billion during the same period in 2005, an increase of 36 percent.

“These record profits are primarily due to the improvement in prices of most of the company’s products and the increase in sales,” said Prince Saud, who is also chairman of the Royal Commission for Jubail and Yanbu.

SABIC is the most consistently profitable public company in the Middle East, and one of the world’s great petrochemical and industrial manufacturers.

Prince Saud said that SABIC has completed its strategic plan for 2020 which will help achieve high growth rates, diversify and introduce value added products.

On Dec. 29, 2006 SABIC completed the acquisition of the purchase of Huntsman’s UK base chemicals and polymers business for a purchase price of $685 million in cash.