Riyadh: Saudi Basic Industries Corp or Sabic, the Middle East's largest listed company, said Tuesday its fourth-quarter net profit rose 27 per cent on increased production and sales, driven by a recovery in demand and low raw materials costs.
Fourth-quarter net profit came in at 5.81 billion Saudi riyals (Dh5.68 billion), compared with 4.58 billion riyals a year earlier. However, the result fell short of analyst expectations at Cairo-based EFG-Hermes, which had expected Sabic to post a fourth-quarter net profit of 6.14 billion riyals.
Full-year earnings per share came in at 7.20 riyals, compared with 3.03 riyalsin 2009, the plastics, chemicals and metals company said in a statement posted on the Saudi bourse website. Net income for 2010 surged to 21.59 billion riyals from 9.07 billion riyals in 2009.
Sabic attributed the rise in quarterly and yearly profit to higher sales prices of most petrochemicals and plastics products, as well as an improved operating performance, resulting in increased production and higher sales volumes.
The company said it will pay a dividend of 2 riyals a share for the second half of 2010. Operating income for the quarter ended Dec. 31 reached 10.01 billion riyals, compared with 7.78 billion riyals a year earlier.
Arabian Gulf-based petrochemical makers including Sabic are benefiting from improved global economic conditions, which have boosted demand for petrochemical products and plastics.
