JEDDAH, 18 April 2005 — The board of directors of Saudi Arabian Basic Industries Corp. (SABIC) has announced cash dividends of SR15 per share and distribution of bonus shares to stakeholders.
The dividends total SR4.5 billion, or 30 percent of the book value of SABIC’s original capitalization of SR15 billion. The directors, at the SABIC’s Annual General Meeting in Riyadh on Saturday under the leadership of Prince Saud ibn Abdullah ibn Thunayan Al-Saud, chairman of the Royal Commission for Jubail and Yanbu, and chairman of the SABIC board of directors, ratified a previously announced plan to distribute one bonus share for every three shares held, increasing the capitalization to SR20 billion.
The board had previously approved a plan to distribute stock dividends semiannually, instead of annually, starting this year.
The Saudi Arabian government owns 70 percent of SABIC shares with the remaining 30 percent held by private investors in Saudi Arabia and other Gulf Cooperation Council (GCC) countries. SABIC is the largest company in the Middle East by market capitalization and the 11th largest petrochemicals manufacturer in the world.
Prince Saud commended SABIC accomplishments during 2004 which substantially contributed to the national development programs and remarkably enhanced the national balance of payments.
SABIC Vice Chairman and Chief Executive Officer Mohammed Al-Mady pointed out that SABIC recorded its highest-ever achievements in 2004. SABIC, he said, will continue to boost its competitive capabilities by improving and enhancing customer services and productivity through research and technology as well as human resources development initiatives.
SABIC’s profit rose to a record SR14.25 billion ($3.80 billion) in 2004, an 113 percent increase on 2003 and the company’s highest profit since inception. Sales revenues for 2004 totaled SR68.738 billion ($18.4 billion), an increase of 47 percent over 2003.
Earlier shareholders approved agenda items which included the board’s report for the fiscal; the auditors report for the year ended Dec. 31, 2004; directors’ remuneration; allocation of SR1,004,551 from profits to the statutory reserve; addition of balance profits to the general reserve; and approval to appoint and determine fees for a comptroller to be selected from a shortlist of accountants nominated by the auditing committee to audit SABIC quarterly and annual accounts for the year 2005.
In other business, the board ratified the modification of Article No. (30) of SABIC Articles of Association and introduction of a new article to issue securities in an effort to diversify the company’s future financing resources.
SABIC is a market leader in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers. It 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 multi-national joint venture partners such as ExxonMobil, Shell, Fortum, Ecofuel/ENI and Mitsubishi Chemicals. SABIC’s overall production capacity has increased from 35.4 million metric tons in 2001 to 42.9 million metric tons in 2004.
