Saudi Basic Industries Corp. — Earnings Release 2012

Jul 18, 2012

SABIC announces interim consolidated financial results for period ended June 30, 2012 (six months) (continuous)

2010 · 18/07/2012 09:18:33 · Announcement #26516 · View on Saudi Exchange

SABIC announces interim consolidated financial results for period ended June 30, 2012 (six months) (continuous)

The second-quarter results were affected by several factors. The most important was the continuous slowdown in global economic growth, especially in Europe, China and North America, which negatively impacted the prices of petrochemical products. Also, this period witnessed some of the scheduled plant maintenance activities for some of our plants, especially in fertilizers, metals and some petrochemical plants.

As a result of the global economic slowdown customers seek to reduce the size of their inventory of petrochemical products in anticipation of the decline of prices for these products worldwide. This adds additional pressure on the prices of these products.

In the third quarter, we may see the return of these customers to increase the volume of their inventories. In addition, some high-cost producers will decrease their production levels, which helps to return back the balance in the market.

Under these variables, we will be focusing on the reliability of operations to improve the operating costs and to introduce new products with higher returns from our innovation centers around the world. We expect a positive impact on the future results.

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