27 October 2013 10:55 [Source: ICIS news]
KARACHI (ICIS)--Petrochemical giant Saudi Basic Industries Corporation (SABIC) on Sunday reported a 2.5% rise in third quarter net profit to Saudi Riyals (SR) 6.47bn ($1.73bn) on increased sales and higher prices for some products.
However, the company did not give its revenue for the third quarter.
Net profit for the three months ended September 30 was SR6.47bn, slightly up from SR6.31bn in the year-ago period, the world’s biggest petrochemicals maker said in a brief statement to Saudi Tadawul stock exchange.
Gross profit rose 12.03% to SR14.43bn, while operating profit was up 14.3% to SR11.27bn.
“The increase in net income is attributable to an increase in quantities sold, favourable prices for certain products and lower financial charges despite lower other income,” SABIC added.
The nine-month net profit was up marginally by 0.95% to SR19.07bn. The company's sales were at SR140bn in the first nine months of 2013, almost flat compared to the sales in the same period last year. However, operating profit was up by 4.87% to SR32.29bn.
SABIC said higher investment income from its associates also helped support profit.
SABIC affiliates Yanbu National Petrochemical Company, last week reported a doubling in third-quarter net profit, while Saudi Kayan swung from a SR178.4m net loss in the third-quarter of last year to a net profit of SR43.3m in the same period this year.
SABIC, which makes petrochemicals, metals and fertilizers, relies heavily on natural gas as a raw material for its chemical business, and is facing increased competition from the United States where a shale gas boom has made new and cheap supplies available.
SABIC last month raised $1bn after investors placed orders worth more than five-times the issue’s size.
($1 = SR3.75)
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