RIYADH: Saudi Basic Industries Corporation (Sabic), the largest petrochemical producer in the Middle East, Sunday reported record profits of 19.2bn riyals ($5.12bn) in 2005, up 35.2 percent from 2004.

Sabic announced “a record 2005 net profit of 19.2bn riyals, compared to 14.2bn riyals ($3.78bn) in 2004,” which had been a 112 per cent increase on 2003, said a company statement.

“Sabic’s profits in 2005 were the highest ever reported, exceeding the previous record profits reported in 2004 by 35 percent,” said Mohamed Al-Mady, Sabic vice chairman and chief executive officer.

“This is due to price increases in major products, a rise in overall production capacity to 46.7 million metric tons (a nine percent increase over 2004) and an increase in overall sales to 36.6 million metric tons, or a nine percent increase over 2004,” he said.

Sabic has recommended to the company’s general assembly a dividend of 23 riyals (6.13 dollars) per share for 2005.”

Sabic affiliated company Safco, the Saudi Arabian Fertilizer Company, also announced Sunday record profits of 1.1bn riyals ($293.3m) in 2005, compared to 660 million riyals ($176 m) in 2004.

Sabic is the largest public company in the Middle East by market capitalization, which exceeds $150bn, and is one of the world’s 10 largest petrochemicals manufacturers.

The company is a among the world’s market leaders in the production of polyethylene, polypropylene, glycols, methanol, MTBE and fertilizers as well as the fourth largest polymer producer.

The Saudi government owns 70 per cent of Sabic shares, with the remaining 30 per cent held by private investors in Saudi Arabia and other Gulf Cooperation Council countries.

Sabic accounts for more than a quarter of the capitalisation of the Saudi stock market, the largest in the Middle East.