20 April 2013 11:40 [Source: ICIS news]
LONDON (ICIS)--SABIC’s net income for the first quarter of the year was Saudi riyal (SR) 6.56bn ($1.75bn), a 10% decrease compared to the same quarter in 2012, as a result of lower production due to planned maintenance across some of its divisions, the Saudi petrochemicals giant said on Saturday.
The figure represents a 13% increase on the company’s net profit for the fourth quarter of 2012, when it posted net income of SR5.83bn.
“The decrease in net income of the first quarter compared to the same quarter of last year, resulted from lower production and sales volumes due to certain planned maintenance activities in some affiliates. However, the improvement in sales prices of certain products has reduced the impact,” the company said in a statement.
The company, which recently announced plans to cut 1,050 jobs in Europe as part of a drive to restructure its operations in the region, said that gross profit for the quarter was down 2% year on year, to SR14.02bn.
According to SABIC, the quarter-on-quarter increase in profits was driven by improving pricing for some products, despite the impact of maintenance on volumes and production.
“The increase in net income for the first quarter compared to the fourth quarter of 2012, resulted from improvement in sales prices of certain products, despite lower production and sales volumes due to certain planned maintenance activities in some affiliates,” SABIC added in a statement filed with Saudi Arabia’s Tadawul exchange.
Income from operations fell 4% year on year to SR11.05bn, while earnings per share fell to SR2.19 from SR2.42 in the same quarter last year.
($1 = SR3.75)
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