SINGAPORE--Petrochemical giant Saudi Basic Industries Corp (SABIC) has reported a 13% year-on-year rise in its first half net profit to a record Saudi riyal (SR)14.5bn ($3.87bn) on improved sales prices and a rise in the volume of production and sales, it said.
"The improvement of sales prices of key products as well as the rise in volume of production and sales has contributed to the results," Mohamed Al-Mady, SABIC Vice Chairman and CEO, said in a statement over the weekend.
This was despite hikes in raw material prices due to rising oil values and the slowdown of major economies, he added.
"This is the Saudi advantage. SABIC doesn t need to go through the pains that other petrochemical players are reeling under," said an analyst referring to SABIC s extremely competitive feedstock costs.
SABIC pays Saudi Aramco $0.75/m Btu for natural gas, compared to current spot Henry Hub natural gas prices of above $10/m Btu that competitors have to pay.
The company s consolidated operating profits rose nearly 20% to SR23bn for the six months to June 30 compared to SR19.2bn for the same period in 2007.
Net profits for its second quarter grew 17% to SR7.54bn year on year, creating a new quarter profit record for SABIC.
The company s board of directors has approved the distribution of SR5.25bn in cash dividends to the shareholders for the first half of 2008, which translates to SR1.75/share.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for the production of chemicals, polymers and fertilizer.
SABIC is 70% owned by the state government with the balance 30% being held by private investors.
"The improvement of sales prices of key products as well as the rise in volume of production and sales has contributed to the results," Mohamed Al-Mady, SABIC Vice Chairman and CEO, said in a statement over the weekend.
This was despite hikes in raw material prices due to rising oil values and the slowdown of major economies, he added.
"This is the Saudi advantage. SABIC doesn t need to go through the pains that other petrochemical players are reeling under," said an analyst referring to SABIC s extremely competitive feedstock costs.
SABIC pays Saudi Aramco $0.75/m Btu for natural gas, compared to current spot Henry Hub natural gas prices of above $10/m Btu that competitors have to pay.
The company s consolidated operating profits rose nearly 20% to SR23bn for the six months to June 30 compared to SR19.2bn for the same period in 2007.
Net profits for its second quarter grew 17% to SR7.54bn year on year, creating a new quarter profit record for SABIC.
The company s board of directors has approved the distribution of SR5.25bn in cash dividends to the shareholders for the first half of 2008, which translates to SR1.75/share.
Headquartered in Riyadh, SABIC was founded in 1976 when the Saudi Arabian government decided to use the hydrocarbon gases associated with its oil production as the principal feedstock for the production of chemicals, polymers and fertilizer.
SABIC is 70% owned by the state government with the balance 30% being held by private investors.
