UpdateSABIC third-quarter net income up on increased sales, production

17 October 2011 17:57  [Source: ICIS news]

(Adds statement from SABIC’s vice chairman and CEO)

SABIC vice chairman and CEO Mohamed Al-MadyLONDON (ICIS)--SABIC reported a 2011 third-quarter net income of Saudi riyals (SR) 8.19bn ($2.18bn, €1.58bn) – an increase of 54% year on year – the Saudi Arabia-based petrochemical major said on Monday.

Compared with the second quarter of 2011, SABIC’s net income increased by 1%, it added.

During a press conference at the group’s headquarters in Riyadh, SABIC vice chairman and CEO Mohamed al-Mady attributed the positive results to increased production and sales.

The company said in a statement that the increase in net income for the quarter ended 30 September 2011, compared with the second quarter of this year, was aided by improvements in plant reliability having a positive impact on revenues and lower financing and operating costs.  

Al-Mady also gave credit to the diversity of SABIC’s markets and its strong presence in global production hubs, especially in the markets of developing economies such as China, India and Saudi Arabia. In these markets, he said, the company had maintained its competitive position and continued to grow.

Al-Mady added that the diversity of SABIC’s products had reduced market risks considerably, and that the group had benefited from a stable economic situation in the kingdom.

Gross operating profit for the quarter ended 30 September 2011 amounted to SR16.81bn – an increase of 46% compared with the same quarter of 2010, SABIC said.

The income from operations in the third quarter of 2011 rose by 50% year on year to SR13.50bn, it added.

For the nine months ended 30 September, SABIC’s net income grew by 52% year on year to SR23.98bn, while gross operating profit rose by 37% to SR48.73bn, compared with the same period in 2010.

Looking ahead, Al-Mady said SABIC continues to grow and invest, and has new projects in place for the 2012–2015 period.

He added that the company continues to expand its performance chemicals production line to manufacture a range of speciality chemicals in order to drive the growth of downstream markets in Saudi Arabia and abroad.

"The company has a strong commitment to being reliable in all its operations. The challenges of the marketplace, the existing global economic volatility and operational challenges are things that SABIC takes into account, and deals with accordingly,” Al-Mady said.

($1 = SR3.75, €1 = SR5.20)

For more on SABIC visit ICIS company intelligence

By: Franco Capaldo
+44 (0)20 8652 3214

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