The Saudi Basic Industries Corporation (SABIC) has announced a net profit of SR 6.31 billion for Q3 2012, as against SR 8.19 billion in the same period last year, a decrease of 23 percent, and an increase of 19 percent as against SR 5.30 billion in the previous quarter.
The net profit for the nine months totaled SR 18.89 billion, as against SR 23.98 billion for the corresponding period of the previous year, a decrease of 21 percent.
Mohamed Al-Mady, SABIC Vice Chairman and CEO, said that the company continues to be stable due to its sound financial position over a sustained period of time. “We are continuing to augment our operational performance at our plants, and we have adopted different strategies to introduce cost-effective measures in our manufacturing processes. Moreover, our diversified product portfolio helps in creating new opportunities for us in global markets,” he said.
Al-Mady attributed the decrease in profits for Q3 2012 as against Q3 2011 to a drop in prices. Despite an increase in overall production and sales during the last nine months, profits have fallen as against the previous year, again due to a drop in prices.
The rise in profits in Q3 as against the previous quarter is a direct result of the initiatives taken to improve operational performance, which in turn, resulted in marked increases in production. In addition, returns from the polycarbonate technology license issued by SABIC Innovative Plastics Company to Sinopec SABIC Tianjin Petrochemicals Company (SSTPC) further augmented revenues.
Al-Mady added that despite the global economic downturn, the company was able to enhance performance and operational capacities. This has resulted in mitigating the adverse effects of economic fluctuations, which have had a negative impact on the overall performance of the petrochemicals sector.
SABIC has approached the global economic slowdown by continuing to emphasize on cost-effective strategies in its operations, and introduction of new products through its Innovative Products business unit, resulting from the innovation successes of the company’s global technology and innovation centers. “We are confident that SABIC, with our global reach, is ready and capable of facing major global challenges and trends, and in the process, bring in sound returns for our shareholders,” he said.
Al-Mady stressed that SABIC does not speculate on economic trends, but it is confident of maintaining its competitive edge, regardless of the economic circumstances, by increasing its production capacities and making constant improvements in product quality. The company will also continue to look for investment opportunities that might arise during the current fluctuations in the global economy.SABIC’s gross profit for Q3 totaled SR 13.18 billion, in contrast with SR 16.81 billion for the corresponding quarter of the previous year, a decrease of 22 percent. The operating profit for Q3 totaled SR 9.84 billion, in contrast with SR 13.50 billion for the corresponding quarter of the previous year, a decrease of 27 percent.
Dividends per share during the nine months were SR 6.30 in contrast with SR 7.99 for the corresponding period of the previous year. The gross profit during the nine months totaled SR 40.43 billion in contrast with SR 48.73 billion for the corresponding period of the previous year, a decrease of 17 percent.
The operating profit during the nine months totaled SR 30.72 billion in contrast with SR 39.28 billion for the corresponding period of the previous year, a decrease of 22 percent.
Source:
http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=117105
