Riyadh, April 01, SPA -- SABIC's General Assembly held recently a meeting under the chairmanship of Prince Saud bin Thenayan Al-Saud, Chairman of the Royal Commission for Jubail and Yanbu and Chairman of the SABIC Board of Directors, at SABIC headquarters in Riyadh.

The General Assembly approved payment of SR 3 cash dividends per share for its operations in 2007.

The General Assembly also ratified increasing the company's capital to SR 30 billion by granting one share for each five shares.

The shareholders on 'Tadawul' records as of the end of trading on the date of the General Assembly meeting will be eligible, according to a report carried by SABIC's website.

The General Assembly also approved the agenda including the Board of Directors' report; SABIC's final accounts and auditors' report for the fiscal year ending December 31, 2007; the Board of Directors' remunerations; holding the Board of Directors free from any liabilities; upgrading of the corporate audit committee's system; recommendation of the audit committee for the selection of an external auditor to audit SABIC's quarterly and annual accounts; and approval to determine the fees for the independent auditor for the fiscal year 2008.

In addition, the General Assembly endorsed amendment of some of the Corporate Articles of Association, namely, Articles 4, 6, 30 and 52.

Prince Saud bin Thenayan said: "SABIC paid SR 1 per share cash dividends for the first half of 2007. Payment of SR 2 per share dividends for the second half of the year will begin from April 1, 2008."

In his speech, he lauded the company's growing performance year by year and its sound financial position as confirmed by world renowned credit rating institutions. "The company's impressive milestones are in line with the weight of the Saudi economy on the global arena. They support the Saudi government's plans to diversify its sources of national income and boost the national balance of payments."

The Prince added that last year SABIC intensified its efforts to strengthen Saudi Arabia's standing among industrialized nations. "It advanced to fifth position among global petrochemical companies. It has continued to work to increase its national contributions."

Last year, the SABIC 2020 strategic project progressed well. The project aims to achieve the company's vision "to be the preferred world leader in chemicals." It further seeks to focus on high, value-added specialty products, such that they account for at least 20% of the company's total income.

"Last year, the company continued to implement several new expansion projects and production programs in Jubail and Yanbu. It has strengthened its foreign investments with the formation of SABIC Innovative Plastic after the acquisition of GE Plastics.

Prince Saud bin Thenayan pointed out that the new business is a strategic step to enter the world of specialized industries. "SABIC Innovative Plastics will add a new series of products to SABIC's portfolio and enhance its global competitiveness. This key move will also create opportunities for the national downstream industries and help them enter new advanced industries like automobiles, telecommunications, media and electronics."

On his part, Mohamed Al-Mady, SABIC Vice Chairman and CEO, presented a summary of the board's report and reviewed the company's performance during the fiscal year 2007.

He spoke of the company's achievements in the areas of production, marketing, scientific research and technical development, and the company's contributions to the national economy.

He also referred to the increase in SABIC's production to 55.2 million tons, an increase of 12 percent over the previous year, with sales rising to 44.2 million tons, an increase of 15 percent. "Revenues touched SR 126 billion, an increase of 46 percent over the previous year, while net profits rose to SR 27 billion, an increase of 33 percent over the previous year. The company's share profit was SR 10.81 compared to SR 8.12."

Al-Mady said that SABIC continued construction work on a series of projects aimed at increasing its national contributions and strengthening its competitive position in the world markets.

The projects are, the YANSAB complex in the Yanbu Industrial City, which is expected to go on stream in the second half of the current year with an annual capacity of approximately four million tons; the SAUDI KAYAN complex in Jubail Industrial City, which is expected to begin production in the first half of 2010 with an annual capacity of about six million tons; the SHARQ expansion project which will add 2.8 million tons by the end of 2008; and the IBN ZAHR expansion project which will add half a million tons in the last quarter of this year.

Al-Mady said that last year SABIC completed the first phase of the EMDAD supply chain project and began the second phase.

EMDAD is a strategic project adopted by the company to build close, long-term relationships with customers and suppliers.

SABIC also developed a new strategy for its mission in the area of social responsibility, reassuring its national belongingness and its keenness to develop its role in the various communities in which it operates.

© Saudi Press Agency 2008