Riyadh, January 20: Saudi petrochemicals giant Sabic reported a fourth quarter surge in profits on Tuesday, confirming the recovery in its main markets after poor results a year earlier.
Saudi Basic Industries Corp., the Gulf’s largest listed company and one of the world’s top petrochemicals producers, turned in a net profit of 4.58 billion riyals (1.22 billion dollars) for the three months to December 31, compared with just 311 million riyals (82.9 million dollars) a year ago.
Gross fourth quarter income for the state-controlled company soared 178 percent to 10 billion riyals (2.76 billion dollars) compared with a year earlier.
The outcome exceeded analyst predictions which were mostly below the four billion-riyal threshold for fourth quarter net income.
It also improved on the 3.6 billion-riyal (960 million dollars) net profit for the July-September period.
Net income for all of 2009 was 9.1 billion riyals (2.43 billion dollars), 59 percent below 2008’s 22 billion riyals (5.87 billion dollars).
The company credited improved demand and prices for its key products.
“The increase in net profit for the fourth quarter… is due to a rise in prices and volumes sold for most petrochemical products, plastics and metals,” it said in a report to Saudi Tadawul stock exchange after the close of trading.
Sabic chairman Prince Saud bin Abdullah bin Thunayan called the results promising for the coming year, when Sabic is due to press ahead with major plant developments, including a large new complex in Tianjin, China, being developed with Chinese giant Sinopec.
The two companies announced on Monday the completion of a 2.68 billion-dollar financing package for the new plant.
“As new production from SABIC’s projects at Sharq, Yansab and our petrochemical complex in China come onstream during 2010, this will add to total company production and sales going forward,” Prince Saud said in a statement.
“Also, as the global economy improves during the year, we expect to see demand for our products improve.”
—Agencies