SABIC Q2 net profits slump 76% to $480m

20 July 2009 02:10  [Source: ICIS news]

LONDON (ICIS news)--SABIC's second-quarter net profits slumped 76% year-on-year to Saudi riyals (SR)1.8bn ($480m) due to the sharp decline in petrochemicals, plastics and metals prices, the company said on Saturday.

However, the earnings for the three months compared with a first quarter loss of SR974m, the return to profitability driven by higher prices for some products.

SABIC said that it pushed volumes higher in the latest quarter with total production volume up 1%, at 28.5m tonnes. The quantity of products sold in the quarter was 22.9m tonnes, up 2% on the previous corresponding period.

“SABIC has maintained outstanding levels of operations despite the global financial and economic crises, said Mohamed Al-Mady, the company's vice-chairman and CEO.

The second quarter outturn takes SABIC's first half profits to SR830m, a fall of 94% when compared with the first half of 2008.

“SABIC's strong financial position, its ability to generate strong cash flows, and the continued efforts to reduce costs, optimise operational efficiencies, and maintain high utilisation rates together with the new production capacities coming on-stream at Yansab and Sharq will have a positive impact on its performance and corporate results in the coming quarters.” he added.

"SABIC's investment in China with Sinopec will profitably further enhance our footprint in the fast growing Chinese market”, he said.

($1 = SR3.75)

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By: Nigel Davis
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