New capacity, revived demand, and the ability to benchmark against the historically terrible first six months of 2009, lifted Sabic Basic Industries (Riyadh, Saudi Arabia) to net income in the first half of 2010 of SR10.45 billion ($2.786 billion), up 1159% compared to net income of SR0.83 billion ($22.1 million) for the same period in 2009. Net income for the quarter ended June 30, was SR5.02 billion ($1.338 billion) up 177% compared to net income of SR1.81 billion ($314.8 million) for the same quarter in 2009. Improvements gained speed in April, May, and June with second quarter income 8% higher than the first quarter of 2010. The gross operating profit for the quarter was SR11.85 billion ($3.159 billion), an increase of 91% compared to the same quarter in 2009. Income from operations amounted to SR9.14 billion ($2.43 billion) compared to SR4.08 billion ($1.087 billion) for the same quarter in the preceding year, for an increase of 124%.
In a statement accompanying the earnings report, Sabic said the increase in the net income is partially attributable to increased production and sales volumes through new capacity coming on-stream at SHARQ, YANSAB, and the joint-venture with Sinopec in China. Additionally, Sabic said improved pricing for most of the products had a positive effect on the consolidated financial performance. Sabic recorded a net profit of SR9 billion ($ 2.4 billion) in 2009. Sales revenues for 2009 totaled SR103 billion ($27 billion), and total assets stood at SR297 billion ($79.2 billion) at the end...