JEDDAH, 8 August 2004 — Plans are under way to sell more shares of Saudi Basic Industries Corporation to the public, according to Prince Saud ibn Abdullah ibn Thunayyan, chairman of the Royal Commission for Jubail and Yanbu.
“The shares will be floated for public subscription at the appropriate time,” he told Asharq Al-Awsat, a sister publication of Arab News.
The government now holds 70 percent stake in the petrochemical giant while the rest is owned by the citizens of Saudi Arabia and other GCC states. “SABIC’s basic law stipulates that its ownership would be shifted to citizens gradually with the state holding only 25 percent of its shares,” the daily quoted Prince Saud as saying.
The company made a profit of SR5.34 billion in the first half of this year, he said.
Prince Saud predicted that the company’s sales in Europe would increase by 22 percent shortly. Last year it sold six million tons in Europe from its total sale of 33.9 million metric tons. “We are working to expand our operations in Europe and strengthen our competitive edge worldwide,” he said.
Prince Saud said the company had intensified security measures around its plants in Jubail and Yanbu in coordination with official agencies following the recent terrorist attacks. “We are applying the latest world technology to ensure security and safety of our employees,” he added.
Asked whether SABIC has any plan to curtail its 16,000-strong staff to cut costs, Prince Saud said: “We have not taken staff retrenchment as a goal in itself. On the other hand, we focus on expanding our operations and increasing our profits.”
