Saudi Basic Industries Corporation (Sabic) reported a record 2005 net profit of SR19.2 billion ($5.11 billion) compared to SR14.2 billion in 2004, an increase of 35 per cent.

The net profits in the fourth quarter of 2005 were SR4.5 billion.
“Sabic’s profits in 2005 were the highest ever reported, exceeding the previous record profits reported in 2004 by 35 per cent.  This is due to price increases in major products, a rise in overall production capacity to 46.7 million tonnes (9 per cent increase) and an increase in overall sales to 36.6 million tonnes, a 9 per cent increase over 2004,” said Mohamed Al-Mady, Sabic vice chairman and CEO.
The fourth quarter of 2005 experienced 6 per cent decrease in profits compared to the profits in the third quarter due to the difference in prices of some raw materials from different periods which have been charged to the fourth quarter, he said.
Al-Mady praised key successes in 2005 including assigning for Sabic the Corporate Credit rating A by Standard & Poor’s and Fitch Ratings,  the offering of Yansab shares for public subscription, the completion of the Fanar project in the third quarter of 2005 and the new United affiliate operating with full capacity, thus adding more value to the company’s overall performance. 
Al-Mady added that expansion projects currently under way are progressing on track and most of them are expected to be completed by the end of 2008.
 The Sabic Board of Directors has recommended to the General Assembly distribution of SR23 per share dividend for 2005.