Sabic reports preliminary consolidated financial results for the period ending December 31, 2008

The total profit in the fourth quarter of 2008 was SAR3.51bn compared to SAR13.35bn for the fourth quarter of 2007, a decrease of 74%.

The operating profit in the fourth quarter of 2008 was SAR1.61bn compared to SAR11.11bn for the fourth quarter of 2007, a decrease of 86%.

The net profit for the twelve month period ended on December 31, 2008 was SAR22bn, compared to SAR27bn for the same period in 2007, a decrease of 19%.

Earnings per share during the twelve months ended on December 31, 2008 reached SAR7.34 compared with SAR9 for the same period in 2007 (As at the end of March 2008 the company's capital was increased from SAR25bn to SAR30bn, by granting one bonus share for every five shares).

The total profit for the twelve month period ended December 31, 2008 was SAR48.1bn, compared with SAR47.43bn for the same period in 2007.

The operating profit for the twelve month period ended December 31, 2008 was SAR37.27bn, compared to SAR41bn for the same period in 2007, a decrease of 9%.

The total production quantities during 2008 rose by 2% while the quantities sold have decreased by 1% compared with the previous year.

Generally, the sharp decline in the results of the fourth quarter of 2008 can be attributed to the decline in demand for petrochemical products and metals because of the economic recession that has hit the world's major economies, as well as the credit crunch that led to difficulties for consumers in obtaining the necessary financial facilities from banks and financial institutions.

This led to an acceleration in the pace of declining petrochemical product prices. The decline in demand for petrochemical products, particularly specialty plastics, arising from the crisis afflicting the global automotive industry and building and construction sectors, has had a strong impact on the performance of Sabic affiliates outside Saudi Arabia. This same decline has been felt by similar companies operating in the same industry. These affiliates are restructuring their businesses to improve performance through a reduction in costs, but in such a manner that does not affect their major activities.

Of course, the combination of these factors have negatively affected the performance and results of petrochemical businesses and the industry all over the world, resulting in bankruptcy for some companies and other companies incurring losses, which have in turn caused the closure of many plants and demobilization of large groups of employees.

Sabic's investment in the past few years will contribute to boosting current production capacities, therefore having a positive impact on the company's performance and financial results in future years.

This made in a statement by HRH Highness Prince Saud bin Abdullah bin Thunayan Al-Saud, Chairman of the Royal Commission for Jubail and Yanbu and Chairman of Sabic. He noted that the Sabic board has decided to recommend to the General Assembly to distribute cash dividends at SAR3.75 for each one share for the second half of 2008.

Eligibility will be for the owners of shares registered on "Tadawul" on the closing of the business day of the General Assembly's meeting scheduled for the beginning of the 2Q2008 to bring the total proposed dividends to SAR9 for 2008, at SAR3 per share.

The Sabic board of directors has already decided on a distribution of SAR5.250m to shareholders for the first half of 2008, at SAR1.75 per share. They were disbursed to shareholders on 04/08/2008.