The Saudi Basic Industries Corporation (SABIC) yesterday announced a 224% increase in net profits for the first six months of 2003, due to increased sales and a rise in prices.
SABIC reported a net income of $850.7 million until 30 June 2003, compared to $262.7 million in the corresponding period of 2002.
SABIC Vice Chairman and Chief Executive Officer, Mohammed Al-Mady, attributed the surge in profits to a 10% increase in sales and an improvement in the prices of petrochemical products.
“Prices stabilised in the second quarter, in spite of a slight weakness in the early part of the quarter, which was caused largely by uncertainty in the global economy and unsettled market conditions in much of Asia because of market reaction to the outbreak of SARS,” he said.
SABIC’s mid-year results also included the profits of its new affiliate, SABIC Europe, after last year’s acquisition of the petrochemicals operations of Dutch chemicals group ‘DSM’ in a deal worth two billion dollars. SABIC Europe owns two petrochemical production sites in Geleen (The Netherlands) and Gelsenkirchen (Germany). Its net profits in the second quarter of 2003 reached $478.4 million, up 29% on the $372.3 million it made in the first quarter of the year.
SABIC’s results were immediately reflected on the Saudi stock market, which rose almost two per cent after one hour of trading yesterday, with SABIC stocks rising the 10% maximum permitted.
Overall SABIC production increased by 10% to 19.6 million tons in the first six months of the year, and sales increased to 15.2 million tons, according to a report published today by Arab News.
Source: SPA
