SABIC's General Assembly & Extraordinary General Assembly approve payment of SR9.2 billion in dividends to shareholders for 2005

SABIC's General Assembly has approved cash dividends of SR 23 per share to shareholders (prior to share split decision) for SABIC's operations in the 2005 fiscal year. The total dividends distributed in the fiscal year amounted to SR 9.2 billion. The company had distributed SR 3.2 billion in dividends for the first half of 2005, at SR 8 per share. The total dividends distributed for the second half of 2005 was SR 6 billion (SR 15 per share prior to split). Payment of dividends will start May 6, 2006 to shareholders on record as at the end of today's trading.

SABIC's Annual General Assembly was held at SABIC Headquarters in Riyadh, on April 22, 2006 under the patronage of HH Prince Saud Ibn Thunayan Al-Saud, Chairman of the Royal Commission for Jubail and Yanbu, and Chairman of the Saudi Basic Industries Corporation (SABIC) Board of Directors. The General Assembly approved the Board of Directors' report for the fiscal year ending December 31, 2005; the SABIC final accounts and auditors report for the same fiscal year; the Board of Directors' remuneration for the fiscal year; holding the Board of Directors free from any liabilities for the same year; the allocation of 10% from profits to the statutory reserve; and approval to appoint and determine fees for an independent auditor (to be selected from a shortlist of accountants nominated by the Auditing Committee) to audit SABIC's quarterly and annual accounts for the year 2006.

Prince Saud said, "SABIC has achieved unprecedented accomplishments in production, marketing, development and technological areas during 2005. These milestones resulted in a rise in revenues and profits as well as growth of SABIC's assets. All this demonstrates SABIC's sound financial position and its integral relations with the national production sectors to gradually replace imported goods. SABIC's efforts have substantially contributed to the overall national development programs. SABIC has strengthened its contribution in the Kingdom's balance of trade and the national balance of payments". HH further praised the dedication and sustained efforts of SABIC employees and the fruitful cooperation of all stakeholders.

Mr. Mohamed Al-Mady, SABIC Vice Chairman and Chief Executive Officer said,

"SABIC has recorded its highest-ever achievements in 2005. Net profits rose to SR 19.2 billion compared to SR 14.2 billion in 2004. Production and sales increased to 46.7 and 36.6 million metric tons respectively, an increase of 9% each. Revenues exceeded SR 78 billion compared to SR 68.5 billion in 2004. Total assets amount to SR 137 billion compared to SR 125 billion. Current assets versus liabilities grew considerably assuring SABIC's sound financial position and its ability to honor its existing obligations."

"2005 witnessed King Abdullah Ibn Abdulaziz Al-Saud laying the foundation stones for the 'Yanbu 2' mega project and a number of other developmental and industrial projects for SABIC, the Royal Commission for Jubail and Yanbu, and a number of Saudi private sector companies in Yanbu industrial city.

"He also inaugurated a new acetic acid plant at the Arabian Industrial Fibers Company (IBN RUSHD) complex. In addition, His Majesty laid the foundation stone for the Yanbu National Petrochemical Company (YANSAB). Yanbu 2 and Jubail 2 will provide a strong basis for the growth of SABIC's manufacturing plants and its local and global expansion. The YANSAB complex will be one of the world's largest petrochemical complexes and will strengthen SABIC's competitive position in world markets and widen its global presence".

Mr. Al-Mady reiterated that the great success of SABIC will not be a cause for any slowdown or slackening of efforts. He said there would be more challenges due to competition arising from the Kingdom's accession to the World Trade Organization (WTO) and the emergence of many new competitive petrochemical projects, particularly in the Middle East region. SABIC has intensified its efforts to boost its competitive capabilities by improving and enhancing customer services, and productivity through R&T and human resources development initiatives, he added.

Al-Mady pointed out that SABIC's expansion projects are on track to increase the company's total annual capacity to 64 million metric tons by 2008.