Despite an increase of sales revenue and tonnage, net profits of Saudi Basic Industries Corporation (Sabic) dipped 37 per cent in the first nine months of 2001 compared with the same period last year, the company reported. Figures it released showed net profits stood at SR1.879 billion ($501.06 million) at the end of September.

Sales revenues rose to $6.133 billion compared with $5.66 billion while actual production increased 27 per cent to 26.3 million tonnes.

Sales tonnage was 20.6 million tonnes, an increase of 27 percent over the same period of 2000.

Net profits in the first half of 2001 were $400.43 million compared with $549.19 million in the corresponding period of 2000. Sales revenues for the first six months of 2001 had risen to $4.27 billion from $3.2 billion and actual production increased 25 per cent to 17.1 million tonnes. Sales tonnage increased by 26 percent during the period to 13 million.

Sabic had earned a net profit of $967 million in 2000 compared with $509 million in 1999 and $538 million in 1998.

Sales increased from $5.11 billion in 1999 to $7.11 billion in 2000. This compared with $4.93 billion in 1998.

Sabic sells its basic chemicals, intermediate chemicals, fertilisers, polymers and metals in more than 100 countries worldwide. Capital of the company is $4 billion and assets total around $24 billion.

Consumption of Sabic products in the kingdom amounts to 4.4 million tonnes and exports are worth $4.21 billion - some 66 per cent of all non-oil exports by Saudi industry.

The company has 16 affiliates in Saudi Arabia and three interests in the Gulf. New projects are United (Jubail United Petrochemical Company), the 17th affiliate in the kingdom, and a polyethylene plant at Petrokemya.

The total production capacity now stands at 36 million tonnes per year (tpy). Actual production was 28.080 million tpy in 2000 against 25.149 million tpy in 1999 and 25.293 million tpy in 1998.

The Far East and South-East Asia accounted for 41 per cent of Sabic sales, the Middle East 23 per cent, Saudi Arabia 15 per cent, the Americas 10 per cent, Europe 7 per cent and Africa 4 per cent.

South East Asia itself accounts for 21.30 percent of sales by value and 22.17 percent by quantity.

In South East Asia, 44.63 per cent of the products sold by Sabic were chemicals, 43.67 per cent were fertilisers and 11 per cent were polymers.