Sabic increases profits despite US and EU slowdown

20 April 2008

Saudi Basic Industries Corporation (Sabic), the region’s largest listed company and the world’s largest chemicals firm by market value, recorded profits of SR6.9bn ($1.8bn) for the first quarter of this year, a 10 per cent increase on the same period in 2007.

Operating profits in the first quarter hit SR10.9bn ($2.9bn), a 14 per cent year-on-year rise. The profit rise was due to an increase in prices of most of its key products and as
a result of increased production and sales by 6 percent and 4 percent respectively, Sabic said.

“I can confirm that Sabic’s global business is growing to achieve our corporate strategic objectives, in spite of increased feedstock prices and an economic slowdown in the United States marketplace and to some extent in Europe,” says Sabic CEO and vice chairman Mohammed al-Mady. “Despite this, Sabic has achieved positive results thanks to the Asian markets and in particular China.”

Last year, Sabic posted record income of SR33bn ($8.8bn) against revenues of SR126.2bn ($33.7bn), a 33 per cent increase. It currently produces more than 54 million tonnes a year of basic chemicals, intermediates, polymers, fertilisers and metals.

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