Total profit for the first quarter amounted to SR 12.22 billion (US$3.26 billion), versus SR 3.62 billion (US$965 million) for the same period last year. That was an increase of 338%. Operating profit for the quarter was SR 9.71 billion, versus SR 0.38 billion for the same period a year earlier, an increase of 2,555%. Earnings per share for the first quarter was SR 1.81,
versus a loss of SR 0.32 per share for the same period last year.
Petrochemical industry activity is considered by some economists to be a key leading indicator of economic activity. Petchems make the basic plastics building blocks that are used by manufactures of both durable and non-durable goods.
In a statement, SABIC Vice Chairman and CEO Mohamed H. Al-Mady noted that the rise of net profits for the first quarter over last year can be attributed to the rise of both production and sales volumes, as well as a remarkable improvement in the prices of most petrochemical products and plastics.
He also pointed out that the current year is seeing more productive capacity added through the completion of projects at SHARQ, YANSAB and the joint-venture petrochemical complex in Tianjin, China. “As economies strengthen this will also positively affect the company’s performance and production,” Al-Mady said.
Bloomberg News reported that SABIC “aims to triple petrochemicals production to 130-million tons by 2020 and plans to add 12-million tons of production by 2012.”