Sabic Q2 net profits fall 3.4% on higher feedstocks
17 July 2006 14:08 [Source: ICIS news]
DUBAI (ICIS news)--Saudi Basic Industries Corporation (Sabic) unveiled on Monday a 3.4% decline to Riyal 4.6bn ($1.2bn/€978m) in second quarter net profits, blaming higher raw material prices for the setback.
First half profits totalled Riyal 8.8bn, a slump of 10.2% compared with the January to June period last year.
"Sabic’s profits in the second quarter 2006 exceeded the profits reported in the first quarter 2006 by 9%," said Sabic vice chairman and chief executive Mohamed Al-Mady.
He said that this was due to an increase in sales volumes and prices and was achieved despite the substantial negative impact of rises in liquid raw material and iron ore costs.
Sabic, the Middle East's biggest petrochemicals producer and the region's largest public company, said its total production in January to June this year was approximately 23.5m tonnes, compared to 22.5m tonnes for the year earlier period.
The quantities sold amounted to 18.8m tonnes, up from 17.3m tonnes in H1 last year, generating an income of Riyal 40.2bn – an increase from Riyal 37.1bn for January to June 2005.
Sabic said that projects commissioned during the second quarter were the Safco IV fertiliser project, a second ethylene glycol (EG) plant at its United affiliate, and the long steel products plant at its Hadeed affiliate.
With the implementation of its expansion projects, Sabic plans to reach a total capacity of more than 64m tonnes/year over the next two years, reaching 100m tonnes/year by 2015.
Al-Mady also announced that Sabic has approved the distribution of semi-annual cash dividends amounting to Riyal 3.75bn at Riyal 1.5 per share (representing 15% of the corporate capital).
By: Anuradha Rao
+65 6780 4359
< previous article(ICIS Podcast: Chemical News Central 2 November 2009)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
Links posted in this story:
|
|
Related Articles
- 13 Dec 06 07:38 Safco to distribute SR600m in dividends
- 01 Nov 06 13:46 Production begins at Safco IV Jubail urea plant
- 16 Oct 06 10:19 Safco Q3 net profit falls 21.2% as sales decline
- 23 Aug 06 10:55 Saudi Arabia's Safco IV urea plant starts up
- 10 Aug 06 17:32 Europe H2 petchem profits growth to slow - S&P
- 18 Jul 06 13:15 Egypt's AMOC net profits up 54% in 2005/6
- 19 Apr 06 10:53 Sabic Q1 net profits down 17% to Riyal 4.2bn
- 23 Jan 06 08:38 Sabic's 2005 net profit rises 35% to $5.1bn
- 17 Oct 05 20:13 Sabic's profits up 2% for Q3, 54% for first nine months
- 19 Jul 05 09:59 Sabic Q2 net profits down 6% on lower petchem prices
- 19 Apr 05 16:31 Sabic Q1 net profits surge 116% to Riyal 5.08bn on higher output, prices
Latest News
- 28 Nov 09 18:18 Canadian rail strike threatens to disrupt chemical shipments
- 27 Nov 09 23:59 Europe Q4 PMMA rises €0.05/kg on margin recovery
- 27 Nov 09 23:59 Europe BdG, PMA falls on weak sentiment, improved availability
- 27 Nov 09 23:59 Europe November ACN settles at rollover to minus €5/tonne
- 27 Nov 09 23:59 Europe Q4 VAM settles at €40-50/tonne increase
Barbara Ortner looks at the off-beat and unusual side of chemical industry life.
ICIS Chemicals Confidential