JEDDAH, 24 April 2006 — Saudi Basic Industries Corp. (SABIC), Saudi Arabia’s largest listed stock, has approved an increase of capital to SR25 billion by distributing one share for each four shares held to shareholders on record as at the end of Saturday’s trading.
SABIC’s shares plunged 10 percent yesterday to close at SR164.25.
SABIC’s General Assembly, which was held at SABIC headquarters in Riyadh on Saturday under the chairmanship of Prince Saud Ibn Thunayan Al-Saud, chairman of the Royal Commission for Jubail and Yanbu and SABIC, has also approved cash dividends of SR23 per share to shareholders (prior to share split decision) for SABIC’s operations in the 2005 fiscal year. The total dividends distributed in the fiscal year amounted to SR9.2 billion. The company distributed SR3.2 billion in dividends for the first half of 2005, at SR8 per share. The total dividends distributed for the second half of 2005 was SR6 billion (SR15 per share prior to split). Payment of dividends will start on May 6 to shareholders on record as at the end of Saturday’s trading.
Prince Al-Saud said, “SABIC has achieved unprecedented accomplishments in production, marketing, development and technological areas during 2005. These milestones resulted in a rise in revenues and profits as well as growth of SABIC’s assets. All this demonstrates SABIC’s sound financial position and its integral relations with the national production sectors to gradually replace imported goods. SABIC’s efforts have substantially contributed to the overall national development programs. SABIC has strengthened its contribution in the Kingdom’s balance of trade and the national balance of payments.” He also praised the dedication and sustained efforts of SABIC employees and the fruitful cooperation of all stakeholders.
SABIC Vice Chairman and Chief Executive Officer Mohamed Al-Mady said, “SABIC has recorded its highest-ever achievements in 2005. Net profits rose to SR19.2 billion compared to SR14.2 billion in 2004. Production and sales increased to 46.7 million and 36.6 million metric tons respectively, an increase of 9 percent each. Revenues exceeded SR78 billion compared to SR68.5 billion in 2004. Total assets amount to SR137 billion compared to SR125 billion.”
SABIC’s profit rose to a record SR19.2 billion in 2005, a 35 percent increase on 2004 and the company’s highest profit since inception. Sales revenues for 2005 totaled SR78.3 billion, making SABIC the largest and most profitable public company in the Middle East.
