Saudi Basic Industries Corporation (SABIC) has reported net profits of SR 14.7 billion (US$3.9 billion) for the first nine months of 2005. This marks an increase of 54% against profits in the same period last year. For 3Q2005, the company reported profits of SR 4.8 billion (US$1.3 billion), an increase of 2% over the 2Q2005 profits. SABIC's total production during the first nine months of 2005 stood at 34.6 million metric tons, an increase of 10 percent over the production in the same period last year. Sales saw an increase of 6% over last year's nine month period. Revenues were SR 56.7 billion (US$15.1 billion) compared to SR 47.1 billion (US$13 billion) revenues in the same period last year, an increase of 20%.
Despite a rise in prices for raw materials, due to the rise of oil prices and the remarkable increase in raw steel prices in parallel with a decrease of reinforced steel prices, SABIC was able to absorb this rise, thanks to the improvement of the global prices of most petrochemical products. This improvement is expected to continue until next year due to balanced supply and demand, rise of energy prices, and an increase of productivity as a result of the added capacities from a number of expansion projects.
19-Oct-05 
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