RIYADH, 5 April 2007 — Moody’s Investors Service Limited has assigned a long-term foreign and local currency rating (A1) with a stable outlook to Saudi Basic Industries Corporation (SABIC ) highlighting Sabic’s worldwide leading market positions in petrochemicals, fertilizers and steel products. Moody’s believes that SABIC’s rating reflects the strong global positions it has built over the past three decades in petrochemicals (e.g. ethylene, methanol, MTBE, ethylene glycol, polyolefins) and fertilizers markets.
SABIC enjoys a highly competitive cost position reflecting the significant economies of scale afforded by its world-scale vertically integrated facilities, ready access to feedstock, and proximity to strategic end markets. Moody’s also acknowledges that the acquisition of DSM’s integrated petrochemicals business in 2002 complemented by the recent purchase of Huntsman’s UK-based commodity chemicals activities, has helped enhance the geographic diversity of Sabic’s asset base, though the majority of its production capacity is still located in Saudi Arabia.
SABIC benefits from its proximity to the fast growing Asian markets while it is able to serve its European-based customers through its wholly-owned subsidiary SABIC Europe (both with Saudi Arabia originated products and SABIC Europe’s own production).
Moody’s highlights SABIC’s instrumental role in supporting the diversification of Saudi Arabia’s economy and job creation within the country through the development of the industrial sector. SABIC is among the highest rated global chemical companies by Moody’s.
SABIC is the largest company in the Middle East by market capitalization (at more than $75 billion), and the 10th largest petrochemicals manufacturer in the world.
It is a market leader in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers and the fourth largest polymers producer in the world.
SABIC’s profit increased to a record SR20.2 billion ($ 5.3 billion) in 2006, the company’s highest profit since inception. Sales revenues for 2006 totaled SR86.3 billion ($23.0 billion), making SABIC the largest and most profitable public company in the Middle East.
SABIC operates six interlinked strategic business units: basic chemicals, intermediates, polymers, specialty products, fertilizers and metals. The company has significant research resources and has dedicated research and technology centers in Riyadh, Geleen in the Netherlands, Houston, Texas and Vadodara in India. Sabic has more than 19,000 employees worldwide.
SABIC has two large production sites in Saudi Arabia — in Al-Jubail and in Yanbu — comprising 18 world-scale complexes. Some of these complexes are operated with multinational joint venture partners such as Exxon Mobil, Shell, Ecofuel/ENI and Mitsubishi Chemicals. SABIC ’s overall production capacity has increased from 35 million metric tons in 2001 to 49 million metric tons of production in 2006.