Sipchem announces the financial results for the period ending 31 December 2009 (12 months)

Sipchem announces the preliminary financial results for the period ending 31 December 2009.

1. The net profit for the fourth quarter was 56.5 million Saudi Riyals against 34.7 million Saudi Riyals for the corresponding period of the last year with a 62.8% increase. This is against 54.7 million Saudi Riyals for the previous quarter with 3.3% increase.
2. The total profit for the fourth quarter was 139.2 million Saudi Riyals against 108.3 million Saudi Riyals for the corresponding quarter of the last year with a 28.5% increase.
3. The operational profit during the fourth quarter was 122.8 million Saudi Riyals against 82.7 million Saudi Riyals for the corresponding quarter of the previous year with a 48.5% increase.
4. The total net profit for the twelve months was 140.9 million Saudi Riyals against 536.8 million Saudi Riyals for the corresponding period of the last year with a 73.8% decrease.
5. The profit per share during the twelve months was 0.42 Saudi Riyals against 1.66 Saudi Riyals for the corresponding period of the previous year.
6. The total profit for the twelve months was 236 million Saudi Riyals against 1.01 billion Saudi Riyals for the corresponding period of the previous year with a 76.6% decrease.
7. The total operational profit during the twelve months was 168.3 million Saudi Riyals against 944.1 million Saudi Riyals for the corresponding period of the last year with an 82.2% decrease.

The increase in the results for the fourth quarter compared with the corresponding period of last year was mainly due to the increased production after the periodic maintenance of the plants and the improvement of the products prices. It is worth mentioning that the continued repercussions of the global economic crisis and the economic recession in the year 2009 had a very big negative impact on the company financial results and the decrease of its profits compared with those of the year 2008. In spite of that, the company continued the implementation of its plan to improve its operations and regulate expenditures.

It is worth mentioning that the company has started the operation of its Acetyls complex in the fourth quarter of last year. This complex is composed of Carbon Monoxide, Acetic Acid and Vinyl Acetate Monomer plants whose products have already been exported to the international markets. These plants shall contribute to maximization of the company’s production and consequently the marketing of new and diversified products which in turn will have their positive impact on the company’s financial results for the year 2010.

The Company has lately announced the Board of Directors’ resolution to distribute cash dividends in the amount of one Saudi Riyal per share for the fiscal year 2009 after getting approval in the General Assembly meeting scheduled in March, 2010.