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Sabic Q4 net profit jumps 11pc to $1.55bn

Riyadh, January 19, 2013

Saudi Basic Industries Corporation (Sabic), the world's biggest petrochemicals group by market value, posted an 11.3 per cent rise in fourth quarter net profits on Saturday, but missed analyst forecasts.

Sabic said it enjoyed stronger sales and higher prices in the fourth quarter than it had in the year-earlier period, but its full-year profit fell despite a rise in overall sales.

Its full-year performance, with net income of SR24.7 billion ($6.59 billion), represented a fall of 15.5 per cent from 2011, when the company enjoyed successive quarters of record performance.

The chemicals, metals and fertilisers conglomerate earned net income of SR5.83 billion ($1.55 billion) in the three months ending December 31, compared to its profit of SR5.24 billion a year ago, it said in a bourse statement.

The fourth-quarter results marked a 7.6 per cent fall from its third quarter net earnings.

Five analysts polled by Reuters had forecast, on average, that Saudi Arabia's largest listed company would earn SR6.39 billion.

Sabic, 70 per cent state-owned, cited a "higher cost of sales and lower sales prices for certain products, despite higher sales and production volumes and reduction in financial charges" for its fall in 2012 net income.

Commenting on the results, Prince Saud bin Abdullah bin Thenayan Al-Saud, the chairman of Sabic and the Royal Commission of Jubail and Yanbu said, "Sabic continues to improve its operations and manufacturing processes, while maintaining the highest safety standards, with full commitment to sustainability."
Prince Saud stressed that Sabic will continue to excel in performance, grow its production capacities and seek to maintain its level of competitiveness despite the prevailing global economic conditions.
The Sabic board, he said, has approved the recommendations of the General Assembly to distribute a cash dividend for the second half of 2012 amounting to SR9 billion, at a rate of SR3 per share.
'An interim cash dividend amounting to SR6 billion was distributed to the shareholders for the first half of 2012, bringing the total profit to shareholders to SR15 billion for 2012, at the rate of SR5 per share, representing 50 per cent of face value of the shares," remarked Prince Saud.
Shareholders registered with the company on the day of the General Assembly meeting, which is scheduled to be held in the second half of April 2013, will be eligible for the dividends of the second half of the year, he added.-Reuters and TradeArabia News Service

Tags: sabic | Saudi | petrochemical |

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