In reference to Petrochem announcement via Tadawul on 9/12/2012 regarding the continuation of its temporary shutdown at its Saudi Polymers Company project, the company would like to clarify why its losses in the months of October and November far exceed its previous months results. This is due to the changes in the regular accounting procedures that are associated with the announcement of commercial operations. In which most project expenses are moved from Capital expenditure to Operating expenditure, and impacts the income statement, instead of being capitalized, this includes: Depreciation and amortization, feedstock, and employee costs. This in addition to the limited production and sales of products since commercial production started.

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