Yanbu National Petrochemicals Company (YANSAB) - currently under construction- reported non-operating losses during the first quarter of 2007 amounting to SR 4.9 million, compared to non-operating profits of SR 81.3 million during the period ending March 31, 2006. The main reason for achieving these results is attributed to a decline in other income arising from the investment of capital from the level of SR 91 million, in the period ending March 31, 2006, to only SR 4 million during the first quarter of 2007. This is in order to use the capital to pay the expenses of building and constructing the manufacturing complex as planned. Loss per share during the first quarter of 2007 is less than one Halala compared to share profit of 15 halalas per share during the period ended March 31, 2006.

Mutlaq Al-Morished, Chairman of YANSAB and SABIC Vice President, Corporate Finance said: “So far, all respective contracts have been awarded. Engineering and construction works are on track. 84% of the engineering works have been accomplished as at end of the 1Q2007. Generally, average engineering, procurement and construction works as at 1Q2007 stands at 56%. YANSAB has been awarded "The Banker's Deal of The Year” Award from the widespread Project Finance Magazine for YANSAB’s financial facilities sourcing during 2006”.

Othman Al-Humaidi
General Manager, Corporate Communications