Saudi Basic Industries Corporation (SABIC) reports consolidated financial results today for the period ended December 31, 2009.
• Net income for the fourth quarter ended December 31, 2009 amounted to SR 4.58 billion, as compared to SR 0.31 billion for the same quarter in 2008, an increase of 1377 percent, and compared to SR 3.6 billion for the preceding quarter, an increase of 26 percent.
• Total income for the fourth quarter ended December 31, 2009 amounted to SR 10 billion compared to SR 3.6 billion for the same quarter of the preceding year, an increase of 178 percent.
• Operating profit for the fourth quarter ended December 31, 2009 amounted to SR 7.8 billion, as compared to SR 1.7 billion for the same period in 2008, an increase of 359 percent.
• Net income for the 12 months ended December 31, 2009, totaled SR 9.1 billion, as compared to SR 22 billion for the same period last year, a decrease of 59 percent.
• Profit per share during the 12 months amounted to SR 3.03 as compared to SR 7.33 for the same period last year.
• Total income for the 12 months amounted to SR 28.4 billion compared to SR 48.1 billion for the same period last year, a decrease of 41 percent.
• The operating profit for the 12 months amounted to SR 18.6 billion compared to SR 37.3 billion for the same period last year, a decrease of 50 percent.
• The increase of the net income for the fourth quarter as compared to the same period in 2008 is due to the rise in prices and quantities sold of most petrochemical, plastic and metal products.
In releasing the 2009 financial data, SABIC Chairman HH Prince Saud bin Abdullah bin Thenayan Al Saud praised the excellent corporate operating performance. 2009 saw a total production of 59 million tons, an increase of 4 percent over last year. Sales totalled 46 million tons for the same period, an increase of 5 percent. Prince Saud explained that the decrease of net income in 2009 compared to last year can be attributed to the sharp decline in the prices of most products, especially for the first half of the year, due to the global financial and economic crisis.
Prince Saud said, “As new production from SABIC’s projects at SHARQ, YANSAB and our petrochemical complex in China come on-stream during 2010, this will add to total company production and sales going forward. Also, as the global economy improves during the year, we expect to see demand for our products improve.”
“SABIC has performed admirably this year in the face of unusual market conditions and has the financial strength and strategy to take advantage of opportunities that emerge during economic turbulence,” he said. “SABIC continues to be able to make strategic moves, including expansion of capacity at existing facilities, and investments in new industrial plants.” He added.
“We recognize the efforts and dedication of our management group and employees and credit them for increasing production and sales quantities year on year even as margins came under pressure,” Prince Saud said. “This is very encouraging because the sales volumes were solid and increased, and every incremental increase in global demand brings an improvement in profitability.”
Prince Saud also noted that the company’s cost structure continues to be an advantage. “The integration of SABIC’s structure into a single global enterprise will offer even further cost advantages as the company leverages its strategic planning, supply chain management, and functional best practices across the global enterprise,” he said.
In its meeting of December 21, 2009, the SABIC Board of Directors decided to recommend to the General Assembly to approve payment of SR 4.5 billion in cash dividends to the shareholders for 2009 at SR 1.5 per share. Eligibility shall be for shareholders registered in Tadawul on the date of the General Assembly’s meeting scheduled for April 2010.
Mohamed Al-Mady, SABIC Vice Chairman and CEO held a press conference on January 20, at SABIC headquarters during which he addressed various Arabic and international media on SABIC’s consolidated financial results for 2009. Later, Q&As session started.