SABIC Q3 net profit up 37% on new capacity

23 October 2007 11:57  [Source: ICIS news]

SABIC Q3 net profit up 37% on new capacityLONDON (ICIS news)--Third quarter net profits at SABIC were 37% higher than the year ago period at SR7.4bn ($1.98bn) including a first-time contribution for the advanced plastics businesses acquired earlier in the year from GE, it said on Tuesday.

Saudi Basic Industries Corp (SABIC) said that higher prices and new capacities had helped lift nine-month 2007 operating profits 37% to SR29.6bn. Nine-months net profit was up 42% at SR20.2bn.

Nine-month sales were up 36% at SR86.5bn. Volume production and sales were up 13% over the period, SABIC said.

The SABIC expansions on-stream so far this year include a Jubail United Petrochemical company (United) ethylene glycol plant, urea and ammonia plants at Saudi Arabian Fertilizer Company (Safco) and a reinforced steel plant at Saudi Iron & Steel Company (Hadeed).

Production was also added in the UK following last year's acquisition of Huntsman’s European base chemicals and polymers business.

The Saudi Arabian petrochemicals, fertiliser and steel giant said its newly created SABIC Innovative Plastics (SIP) business would carry the full finance costs of its $11.6bn acquisition of GE Plastics that it completed in August.

($1 = SR3.74)

By: Nigel Davis
+44 20 8652 3214

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