Saudi Basic Industries Corporation is to distribute SR1.33 billion
($355.46 million) in dividends for the year 2000. The company’s
shareholders at a meeting here on Saturday night approved
recommendations of the board of directors to pay dividends at a rate
of SR5 per share. It also agreed to issue one bonus share for every
eight shares, effectively raising the company’s capital to SR15
billion. The payments to shareholders will begin on April 24.
Hashim Abdullah Yamani, minister of industry and electricity and
chairman of SABIC’s board of directors, chaired the annual general
assembly of shareholders held at SABIC headquarters. The meeting
re-elected Muhammad S. Abanumay and Abdullah M. Al-Issa as private
sector representatives to the board.
meeting also approved the auditors report for 2000, the annual
remuneration for board members, the financial report and the transfer
of balance profit to general reserves and the board’s recommendation
to re-appoint SABIC auditors for the next year.
performance in 2000, Dr. Yamani said, “was crowned by a
technological breakthrough, when SABIC developed a new process to
produce acetic acid. Consumption of SABIC’s products in the Kingdom
reached 4.4 million metric tons and exports were worth SR15.8 billion,
66 percent of all non-oil exports of the Kingdom”.
also spoke about the long-term contract between SABIC and Saudi
Aramco, under which SABIC supplies 700,000 mt/y MTBE, enabling the
latter to provide lead-free gasoline to consumers in the Kingdom. The
minister also thanked SABIC for achieving 75 percent to 93 percent
Saudization in various departments.
Vice Chairman and Managing Director Muhammad H. Al-Mady said SABIC
achieved a net profit of SR3.63 billion in 2000, an increase of 113
percent over the previous year despite higher gas and power prices and
other costs, which added SR835 million to SABIC’s bills. The
increase in profit stemmed from improvement in prices in most product
areas last year.
Saudi company has increased actual production by 12 percent to reach
28 million metric tons in 2000 as sales increased six percent to reach
21.3 million metric tons,” said Al-Mady.
highlights for the year included the detailed engineering work and
contracts for the creation of the Jubail United Petrochemical Company
(UNITED), which will facilitate new production capacity in ethylene,
polyethylene (PE), ethylene glycol (EG) and linear alpha olefins
(LAO). SABIC is also upgrading systems and equipment to strengthen
security, health and environmental protection.
stressed the strategic importance of the SABIC Business Transformation
Project, which would enhance the company’s position as a global
leader. He also praised the role of the Consolidated Purchasing
Organization (CPO) in reducing costs further.
noted that more than 125 patents were filed both inside and outside
the Kingdom in 2000 and SABIC would continue to look for
new technology to boost its operations.