Global petrocemical giant Saudi Basic Industries Corporation (Sabic) said it will distribute dividends worth SR15 billion ($3.9 billion) to shareholders at SR5 per share for the group's operations in 2012.

The announcement was made at the company's annual General Assembly meeting in Riyadh under the chairmanship of Prince Saud bin Abdullah bin Thenayan Al-Saud, also the chairman of the Royal Commission for Jubail and Yanbu.

For the first half of 2012, the company had distributed dividends at SR2 per share, said a statement from Sabic. The eligibility for receiving second half dividend payments at SR3 will be for shareholders listed in Tadawul (Saudi Stock Exchange) records as of the end of trading on the day of the General Assembly meeting.

In his remarks, Prince Saud said Sabic had maintained a strong financial performance during 2012, and increased its production capacity to reach 72 million tons, a three-million-ton increase compared to the previous year.

The petrocemical giant had achieved a total sales of SR189 billion. "Thanks to its strong performance, Sabic has been able to maintain its stable top credit rating as well as its outlook by international credit rating agencies," he stated.

According to him, the shareholders' equity surged to SR148 billion from SR138 billion.

Prince Saud praised the participation of Sabic shareholders in helping to achieve corporate development objectives and leadership ambitions.

The petrochemical company’s total assets soared to SR338 billion, compared to SR333 billion, with net income around SR24.7 billion. The total volume of sales reached 55 million tons, one million more than the previous year.

Sabic vice chairman and CEO, outlined the company’s achievements during 2012, and its tireless efforts to double its national contributions and enhance its competitiveness in global markets.

"Sabic continues to invest in downstream industries to support the Kingdom’s economic development through a number of important projects,” he stated.

Al-Mady said the company had invested about SR44 billion into key projects such as a steel and long products project at Hadeed which will boast of an annual production capacity of one million tons besides an estimated investment of SR3.3 billion, projects at Ibn Rushd with an investment of SR4 billion, and an elastomers project in Jubail Industrial City, a joint venture with ExxonMobil, with an investment of SR12 billion.

Al-Mady also spoke of the shrouq and Samac projects, the expansion of Petrokemya, and the world-class phosphate production facility to be established with the Mosaic Company and Ma’aden.

Al-Mady further highlighted Sabic’s focus on investing in technology and innovation to provide new products and solutions to meet the challenges facing the petrochemical industry.

According to him, Sabic will be opening four new technology centers this year – two in Saudi Arabia, one in Shanghai, China and another in Indian city of Bangalorea.

"Sabic has the elements of continuous success, such as qualified, trained human resources, and the application programs it needs to reduce costs and improve productivity, enhancing its competitive position in global markets," stated Al-Mady.

 "Only strong companies can afford to meet present-day challenges and solve problems," he added.

The General Assembly also approved four members, at least three of who are independent, from a nominees list to represent shareholders on the board in its next session, starting with the approval of the General Assembly and for a term of three years.

The new board members include Abdullah Mohammad Al-Issa, Dr Khaled Hamza Nahas, Mohammad Abdullah Al-Khurashi and Abdulaziz Habdan Al-Habdan.-TradeArabia News Service