Profits at the Saudi petrochemicals and polymer group rose 67% in the first half

Saudi Basic Industries Corporation (Sabic) has reported first half 2004 net profits of SR5.34bn (E1.160bn), an increase of 67% compared with the same period in 2003.

Vice chairman and chief executive officer Mohamed Al-Mady said the profits substantiated the company’s efforts to enter new markets and conclude long-term contracts with customers.

“The profits reflect improvements in performance, productivity and marketing in parallel with price rises of most products around the world,” he said. Second quarter profits in 2004 were SR2.99bn (E650m) compared with SR2.350bn (E510.6m) in the first quarter of the year.

“Sabic is enhancing its global competitiveness through a series of expansion projects and increases in productivity. Investments in such projects are close to SR24bn with a target of 60 million tonnes of production by 2008,” said Al-Mady.

Sabic unveiled plans for a new petrochemical complex in Yanbu Industrial City at the end of last year (PRW.com 5 January 2004). It will have an annual production capacity of 3.8 million tpa of ethylene, ethylene glycol, polyethylene and polypropylene products. The company expects production to begin before the end of 2007. Sabic also acquired DSM petrochemicals in 2002.