Saudi Basic Industries Corporation, the world’s largest petrochemicals maker by market value, said fourth-quarter profit rose 11 per cent as sales grew and it raised prices on some products. The quarterly profit increase was Sabic’s first in 2012.
Net income rose to 5.83 billion riyals ($1.55 billion) from 5.24 billion riyals a year earlier, Sabic said in a statement to the Saudi stock market.
The gross profit for the 12-month period ended December 31, 2012 was SR 54.31 billion, compared to SR 62.13 billion for the same period in 2011, a decrease of 12.6%
The income from operations for the 12-month period ended December 31, 2012 was SR 40.94 billion, compared to SR 48.84 billion for the same period in 2011, a decrease of 16.2%
The company statement said a decrease in net income for the 12-month period ended December 31, 2012 compared to the same period in 2011 was due to higher cost of sales and lower sales prices for certain products, despite higher sales and production volumes and reduction in financial charges.
The decrease in net income for the fourth quarter ended December 31, 2012 compared to the third quarter was attributed to higher cost of sales, as well as lower other income related to the recording of polycarbonate licensing gains in the third quarter, ‘despite improvement in sales prices of certain products’.
Commenting on the financial results, Prince Saud bin Abdullah bin Thenayan Al-Saud, 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.”
He added 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.
