Saudi Basic Industries (Sabic) expects good profits in 2006 but is not sure whether they will top last year’s record, its chief executive said.

“We are moving in the same direction as last year,” Mohamed Al Mady said. “We know it’s going to be a good result, but the question is whether it will be more than 2005 or not.”
He said Sabic, the biggest non-oil firm in the Middle East, was trying to offset price hikes for some materials.
“That will have an impact on us but we are trying to mitigate this by being very cost sensitive and looking for areas we can improve like logistics and shared services,” he said on the sidelines of a conference in the UAE to launch the Gulf Petrochemicals and Chemicals Association (GPCA).
“We are always examining our logistics and how we can improve them and reduce costs. We ... are sharing all the services between the plants, so that we reduce the costs.”
Sabic benefits from cheap gas and feedstock supplies from state oil producer Saudi Aramco but Sabic has said it has taken a hit from the rising cost of other inputs.