Exhibit 99.2

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS' REPORTS

YEARS ENDED DECEMBER 31, 2012, 2011 and 2010

INDEX	PAGE
Independent auditors' reports	2 -3
Balance sheets	4
Statements of income	5
Statements of cash flows	6
Statements of partners' equity	7
Notes to the financial statements	8 - 22

1

INDEPENDENT AUDITOR'S REPORT

To the management

National Methanol Company (Ibn Sina)

Al-Jubail, Saudi Arabia

We have audited the accompanying financial statements of National Methanol Company (Ibn Sina), which comprise the balance sheets as of December 31, 2012 and 2011, and the related statements of income, partners' equity, and cash flows for the years then ended, and the related notes to the financial statements, which, as described in Note 2 to the financial statements, have been prepared on the basis of accounting principles generally accepted in Saudi Arabia.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in Saudi Arabia; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of National Methanol Company (Ibn Sina) as of December 31, 2012 and 2011, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in Saudi Arabia.

Emphasis of Matter

As discussed in Note 2 to the financial statements, National Methanol Company (Ibn Sina) prepares its financial statements in accordance with accounting principles generally accepted in Saudi Arabia, which differs from accounting principles generally accepted in the United States of America. Information relating to the nature and effect of such differences is presented in Note 22 to the financial statements. Our opinion is not modified with respect to this matter.

For BDO Dr. Mohamed Al-Amri & Co.

/s/ Gihad M. Al-Amri

Certified Public Accountant

Registration No. 362

Dammam, Saudi Arabia

February 5, 2013

2

INDEPENDENT AUDITOR'S REPORT

To the management

National Methanol Company (Ibn Sina)

Al-Jubail, Saudi Arabia

We have audited the statements of income, cash flows and partners' equity of National Methanol Company (Ibn Sina), a Saudi limited liability company (the "Company") for the year ended December 31, 2010. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the results of the Company's operations and its cash flows for the year ended December 31, 2010 in conformity with accounting principles generally accepted in Saudi Arabia.

Accounting principles generally accepted in Saudi Arabia vary in certain significant respects from accounting principles generally accepted in the United States of America. Information relating to the nature and effect of such differences is presented in Note 22 to the financial statements.

Deloitte & Touche

Bakr Abulkhair & Co.

/s/ Nasser M. Al-Sagga

License No. 322

Al Khobar

Kingdom of Saudi Arabia

February 10, 2011

3

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

BALANCE SHEETS

AS OF DECEMBER 31, 2012 AND 2011

		2012	2011
	Notes	SR 000	SR 000
ASSETS
Current assets
Cash and cash equivalents	3	419,343	395,340
Trade receivables	15	554,140	502,597
Inventories	4	240,024	201,728
Other receivables and prepayments	5	65,867	56,844
Total current assets		1,279,374	1,156,509
Non-current assets
Property, plant and equipment	6	715,537	730,687
Intangible assets	7	34,535	63,106
Other non-current assets	8	17,403	20,923
Total non-current assets		767,475	814,716
TOTAL ASSETS		2,046,849	1,971,225
LIABILITIES AND PARTNERS' EQUITY
Current liabilities
Accounts payable	10	70,917	39,964
Accrued and other current liabilities	11	570,851	578,064
Total current liabilities		641,768	618,028
Non-current liabilities	12	121,680	126,574
Total liabilities		763,448	744,602
Partners' equity
Share capital	1	558,000	558,000
Statutory reserve	18	279,000	279,000
Retained earnings		446,401	389,623
Total partners' equity		1,283,401	1,226,623
TOTAL LIABILITIES AND PARTNERS' EQUITY		2,046,849	1,971,225

The accompanying notes form an integral part of these financial statements

4

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

STATEMENTS OF INCOME

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

		2012		2011		2010
	Notes	SR 000		SR 000		SR 000
Sales	15	5,044,298		4,659,811		3,489,813
Cost of sales	15	(2,524,445	)	(2,474,365	)	(2,021,016	)
Gross profit		2,519,853		2,185,446		1,468,797
Distribution expenses		(478	)	(1,011	)	(372	)
General and administrative expenses	14,15	(25,439	)	(20,221	)	(16,335	)
Operating income		2,493,936		2,164,214		1,452,090
Financial charges		—		(14	)	(4	)
Other income, net		11,752		15,029		7,989
NET INCOME		2,505,688		2,179,229		1,460,075

The accompanying notes form an integral part of these financial statements

5

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

	2012		2011		2010
	SR 000		SR 000		SR 000
OPERATING ACTIVITIES
Net income	2,505,688		2,179,229		1,460,075
Adjustments for:
Depreciation	111,258		159,248		97,306
Amortization	50,508		29,593		51,992
End-of-service indemnities	14,806		14,669		14,750
Changes in operating assets and liabilities:
Trade receivables	(51,543	)	(40,467	)	9,640
Inventories	(38,296	)	17,474		(38,484	)
Other receivables and prepayments	(9,023	)	(19,149	)	14,451
Accounts payable	30,953		(6,574	)	16,713
Accrued and other current liabilities	17,354		11,424		51,551
Other liabilities	(3,581	)	3,675		(283	)
End-of-service indemnities paid	(16,119	)	(3,153	)	(1,877	)
Zakat and income tax paid	(311,623	)	(186,229	)	(137,746	)
Net cash from operating activities	2,300,382		2,159,740		1,538,088
INVESTING ACTIVITIES
Additions to property, plant and equipment, net	(96,663	)	(232,773	)	(68,575	)
Additions to intangible assets	(21,937	)	(53,963	)	(51,464	)
Other non-current assets	3,520		33,097		997
Net cash used in investing activities	(115,080	)	(253,639	)	(119,042	)
FINANCING ACTIVITIES
Dividends paid net of zakat and income tax	(2,161,299	)	(1,845,995	)	(1,368,130	)
Net cash used in financing activities	(2,161,299	)	(1,845,995	)	(1,368,130	)
Net change in cash and cash equivalents	24,003		60,106		50,916
Cash and cash equivalents, January 1	395,340		335,234		284,318
CASH AND CASH EQUIVALENTS, DECEMBER 31	419,343		395,340		335,234
Non-cash transactions:
Accruals for additions to property, plant and equipment	555		6,892		9,021
Construction in progress transferred to employee home ownership receivables	—		—		27,683

The accompanying notes form an integral part of these financial statements

6

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

STATEMENTS OF PARTNERS' EQUITY

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

		Saudi
		Basic		CTE
		Industries		Petrochemicals
		Corporation		Company		Total
	Notes	SR 000		SR 000		SR 000
Share capital
December 31, 2012, 2011 and 2010	1	279,000		279,000		558,000
Statutory reserve
December 31, 2012, 2011 and 2010	18	139,500		139,500		279,000
Retained earnings
January 1, 2010		199,200		199,666		398,866
Net income for the year		730,038		730,037		1,460,075
Zakat and income tax for the year	13	(19,846	)	(159,586	)	(179,432	)
Amounts withheld from partners towards zakat and income tax		—		97,421		97,421
Dividends related to the year 2009, net		(199,304	)	(192,049	)	(391,353	)
Dividends related to the current year		(537,099	)	(537,099	)	(1,074,198	)
December 31, 2010		172,989		138,390		311,379
Net income for the year		1,089,615		1,089,614		2,179,229
Zakat and income tax for the year	13	(28,549	)	(226,441	)	(254,990	)
Amounts withheld from partners towards zakat and income tax		—		113,099		113,099
Dividends related to the year 2010, net		(173,185	)	(139,564	)	(312,749	)
Dividends related to the current year		(823,173	)	(823,172	)	(1,646,345	)
December 31, 2011		237,697		151,926		389,623
Net income for the year		1,252,844		1,252,844		2,505,688
Zakat and income tax for the year	13	(33,030	)	(254,581	)	(287,611	)
Amounts withheld from partners towards zakat and income tax		—		169,770		169,770
Dividends related to the year 2011, net		(237,853	)	(153,178	)	(391,031	)
Dividends related to the current year		(970,019	)	(970,019	)	(1,940,038	)
December 31, 2012		249,639		196,762		446,401
Total partners' equity
December 31, 2012		668,139		615,262		1,283,401
December 31, 2011		656,197		570,426		1,226,623
December 31, 2010		591,489		556,890		1,148,379

The accompanying notes form an integral part of these financial statements

7

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

1. ORGANIZATION AND ACTIVITIES

National Methanol Company (“Ibn Sina”) (“the Company”) is a Saudi limited liability company registered under Commercial Registration No. 2055000779 dated 19 Rajab 1401H (May 23, 1981).

The Company is owned equally by Saudi Basic Industries Corporation (“SABIC”), a Saudi Arabian joint stock company and CTE Petrochemicals Company (“CTE”), a partnership registered in Cayman Islands, British West Indies. CTE is equally owned by Elwood Insurance Ltd., a Bermuda Corporation and Texas Eastern Arabian Ltd., a Bermuda Corporation (collectively "the Partners").

The authorized share capital of the Company is SR 742 million divided into 7,420 units of SR 100,000 each. The paid up capital at December 31, 2012 and 2011 was SR 558 million comprised of 5,580 units of SR 100,000 each.

The Company's principal business activity is to operate a petrochemical complex at Al-Jubail Industrial City which produces Methanol and Methyl Tertiary Butyl Ether (“MTBE”). The Company's Methanol and MTBE plants commenced commercial operations on November 1, 1984 and July 1, 1994, respectively. SABIC distributes and markets the Company's products.

During 2010, the partners agreed to expand the Company's activities by establishing a plant for the manufacturing of polyoxymethylene (“POM”).

The Company's registered office is in Al-Jubail Industrial City in the Kingdom of Saudi Arabia.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying financial statements have been prepared in compliance with the accounting standards issued by the Saudi Organization for Certified Public Accountants ("SOCPA"). The following is a summary of significant accounting policies applied by the Company:

Accounting convention

The financial statements are prepared under the historical cost convention.

Revenue recognition

Product sales are made to SABIC (“the Marketer”). Upon delivery of products to the Marketer, sales are recorded at provisional selling prices net of marketing expenses paid directly by the Marketer. These selling prices are later adjusted based upon actual selling prices received by the Marketer from third parties. Adjustments are recorded as they become known to the Company.

Distribution and general and administrative expenses

Distribution expenses principally comprise of costs incurred in the distribution and sale of the Company's products / services. All other expenses are classified as general and administrative expenses.

General and administrative expenses include indirect costs not specifically part of production costs as required under the accounting standards issued by SOCPA. Allocations between general and administrative expenses and cost of sales, when required, are made on a consistent basis.

Accounts receivable

Accounts receivable are stated at the original invoice amount less an allowance for any uncollectible amounts. Adjustments are recorded as they become known to the Company. An estimate for doubtful debts is made when the collection of the accounts receivable amount is considered doubtful. Bad debts are written off as incurred.

8

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

Inventories

Finished goods and chemicals are stated at the lower of cost or net realizable value. Cost of finished goods, chemicals, spare parts and supplies is determined on a weighted average cost basis. Inventories of finished goods include cost of materials, labor and an appropriate portion of direct overheads.

Inventory items that are considered as essential to ensure continuous plant operations are treated as capital spare parts and are classified as plant and equipment and are depreciated using the depreciation rate relevant to the corresponding plant and equipment.

Property, plant and equipment

Property, plant and equipment are stated at cost net of accumulated depreciation except for construction in progress which is stated at cost. Expenditure on maintenance and repairs is expensed, while expenditure for betterments are capitalized. Depreciation is provided over the estimated useful lives of the applicable assets using the straight-line method. Leasehold improvements are amortized over the shorter of the estimated useful life or the remaining term of the lease. The estimated years of depreciation of the principal classes of assets are as follows:

	Years
Buildings	33
Plant and equipment	5-20
Catalyst	1-6
Furniture, fixtures and vehicles	4-10

Shared power project under construction

The shared power project is stated at cost less the share of SABIC and its affiliates (collectively “the parties”) in the project. Initially, the total cost incurred for the shared power project is recorded by the Company and the share received from the parties is reduced from the total cost incurred.

Intangible assets

Intangible assets anticipated to provide identifiable future benefits are classified as non-current assets, and are amortized using the straight-line method over their estimated useful lives. Such intangibles assets and their expected amortization periods are as follows:

Employee home ownership (“HOP”) costs

Costs incurred in connection with the construction of employee housing are capitalized with the related assets and are amortized using the straight-line method over a period of five years.

Planned turnaround costs

Planned turnaround costs are deferred and amortized over the period until the date of the next planned turnaround. Should an unexpected turnaround occur prior to the previously envisaged date of planned turnaround, then the previously unamortized deferred costs are immediately expensed and the new turnaround costs are amortized over the period likely to benefit from such costs.

Costs of implementation of SAP Enterprise Resource Planning System (“SAP ERP”)

As per the requirements of SABIC's unified accounting policies, all costs relating to Fanar-SAP ERP implementation are deferred and amortized using the straight-line method over a period of five years.

Impairment

At each balance sheet date, the Company reviews the carrying amounts of its property, plant and equipment and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

9

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. Impairment losses are recognized as an expense immediately.

Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognized as income immediately.

Production advances

Amounts received from affiliates in respect of capital advances to finance tangible assets of the Company are included under non-current liabilities and are amortized over the estimated useful lives of the related assets using the straight-line method.

End-of-service indemnities

End-of-service indemnities, required by the Saudi Arabian labor law, are provided in the financial statements based on the employees' length of service.

Employees' home ownership program

The Company has a home ownership program that offers eligible Saudi employees home ownership opportunities.

Unsold housing units constructed for eventual sale to eligible employees are included under property, plant and equipment and depreciated over 33 years.

When the houses are allocated to the employees, the cost of houses constructed and sold to the employees under the program is transferred from property, plant and equipment to other non-current assets. Down payments and installments of purchase price received from employees are set off against the other non-current assets.

The cost of the houses and the related purchase price is removed from other non-current assets when the title to the houses is transferred to the employees, at which time, no significant gain or loss is expected to result to the Company.

Employees' savings plan

The Company maintains an employee saving plan. The contributions from the participants are deposited in a separate bank account and provision is established for the Company's contribution.

Dividends

Dividends are recognised as a liability at the time of their approval by the Board of Directors. Interim dividends are recorded as and when approved by the Board of Directors.

Foreign currency translation

Foreign currency transactions are translated into Saudi Riyals at the rates of exchange prevailing at the time of the transactions. Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are translated to Saudi Riyals at the exchange rates prevailing at that date. Gains and losses from settlement and translation of foreign currency transactions are included in the statement of income.

Zakat and income tax

The Company is subject to the Regulations of the Department of Zakat and Income Tax ("DZIT") in the Kingdom of Saudi Arabia. Zakat and income tax are provided on an accruals basis and charged to retained earnings. The zakat charge is computed at 2.5% on the zakat base or adjusted net income, whichever is higher. Income tax is computed at 20% of adjusted net income. Any difference in the estimate is recorded when the final assessment is approved, at which time the provision is cleared.

10

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

As per the requirements of the standard issued by the Saudi Organization for Certified Public Accountants, zakat and income tax provisions for mixed companies are presented as a separate item in the statement of partners' equity. Any amount withheld or recovered from partners towards zakat and income tax is added back to the partners' equity.

By-product sales

Sales of by - products are credited to cost of sales.

Technology and innovation

Technology and innovation costs are expensed when incurred.

Leasing

Leases are classified as capital leases whenever the terms of the lease transfer substantially all of the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. Rentals payable under operating leases are charged to income on a straight-line basis over the term of the operating lease.

3. CASH AND CASH EQUIVALENTS

Cash and cash equivalents include cash, demand deposits, and fixed term deposits with maturities of three months or less from the date of acquisitions. At December 31, 2012 and 2011, cash and cash equivalents are as follows:

	2012	2011
	SR000	SR 000
Cash and bank balances	175,593	114,090
Time deposits	243,750	281,250
	419,343	395,340

Cash and bank balances at December 31, 2012 include employees saving plan deposits held in a separate bank account of SR 5.0 million (2011: SR 5.0 million), which are not available to the Company.

4. INVENTORIES

	2012	2011
	SR 000	SR 000
Finished goods	120,673	130,886
Chemicals	31,058	21,214
Spare parts and supplies	53,440	36,157
Goods in transit	34,853	13,471
	240,024	201,728

Inventories at December 31, 2012 are shown net of allowance for obsolescence of SR 12.3 million (2011: SR 12.3 million). The spare parts inventory primarily relates to plant and machinery and, accordingly, this inventory is expected to be utilized over a period exceeding one year.

11

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

5. OTHER RECEIVABLES AND PREPAYMENTS

	2012	2011
	SR 000	SR 000
Advances to related parties (note 15)	44,711	33,926
Prepayments	15,945	11,321
Others	5,211	11,597
	65,867	56,844

6. PROPERTY, PLANT AND EQUIPMENT

2012

					Furniture,
		Plant and			fixtures and	Construction
	Buildings	equipment		Catalyst	vehicles	in progress		Total
	SR 000	SR 000		SR 000	SR 000	SR 000		SR 000
Cost
January 1, 2012	311,681	2,264,307		171,121	86,100	161,579		2,994,788
Additions	—	7,914		98	1,238	86,863		96,113
Transfers	—	22,500		1,558	2,180	(26,238	)	—
Disposals	—	(156	)	—	—	—		(156	)
December 31, 2012	311,681	2,294,565		172,777	89,518	222,204		3,090,745
Accumulated depreciation
January 1, 2012	224,279	1,842,464		121,445	75,913	—		2,264,101
Charge for year	9,518	79,156		19,893	2,691	—		111,258
Disposals	—	(151	)	—	—	—		(151	)
December 31, 2012	233,797	1,921,469		141,338	78,604	—		2,375,208
Net book value
December 31, 2012	77,884	373,096		31,439	10,914	222,204		715,537

12

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

2011

					Furniture,
			Plant and		fixtures and	Construction
	Buildings		equipment	Catalyst	vehicles	in progress		Total
	SR 000		SR 000	SR 000	SR 000	SR 000		SR 000
Cost
January 1, 2011	311,568		2,187,052	141,154	80,383	35,614		2,755,771
Additions	—		65,182	27,093	1,496	145,108		238,879
Transfers	113		12,073	2,874	4,221	(19,143	)	138
December 31, 2011	311,681		2,264,307	171,121	86,100	161,579		2,994,788
Accumulated depreciation
January 1, 2011	215,399		1,747,798	68,858	73,446	—		2,105,501
Charge for year	9,528		94,666	52,587	2,467	—		159,248
Transfers	(648	)	—	—	—	—		(648	)
December 31, 2011	224,279		1,842,464	121,445	75,913	—		2,264,101
Net book value
December 31, 2011	87,402		421,843	49,676	10,187	161,579		730,687

The Company has renewed its industrial land lease agreement with the Royal Commission for Jubail and Yanbu for a period of 10 years commencing from 1 Jumada 'I, 1432H (April 5, 2011).

At December 31, 2012 and 2011, construction in progress mainly represents costs incurred and advances paid in respect of catalyst housing units under construction, POM and the shared power project.

POM project under construction

The POM project under construction at December 31, 2012 amounted to SR 160.6 million (2011: SR 114.9 million). This comprises of costs incurred by the Company for the construction of the POM plant and related facilities at Jubail Industrial City, Kingdom of Saudi Arabia. Construction related costs at December 31, 2012 and 2011, comprise of construction costs under various agreements and directly attributable costs to bring the asset to the location and condition necessary for it to be capable of operating in a manner intended by the management. Directly attributable costs mainly include employee benefits, licensing fees and engineering costs.

13

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

Shared power project under construction

During 2012, the Company entered into an agreement (for front end engineering design phase) with SABIC and its affiliates for the shared power project to facilitate the Company's POM project and existing Methanol and MTBE plants. The total cost incurred, provisional share of the parties, share of the POM project, and cost attributable to existing Methanol and MTBE plants recorded in construction in progress are as follows:

	2012
	SR 000
Total cost incurred for the shared power project	48,132
Less: provisional share of the parties	(40,032	)
Total cost attributable to the Company	8,100
Share attributable to the POM project under construction	7,546
Share attributable to existing Methanol and MTBE plants	554

Agreement for next phase of the shared power project under construction is currently under negotiation between the Company and the parties.

7. INTANGIBLE ASSETS

2012

	Employee
	home		Software
	ownership	Turnaround	development
	costs	costs	costs	Total
	SR 000	SR 000	SR 000	SR 000
Cost
January 1, 2012	5,877	269,719	18,963	294,559
Additions	—	21,937	—	21,937
December 31, 2012	5,877	291,656	18,963	316,496
Accumulated amortization
January 1, 2012	3,752	210,116	17,585	231,453
Charge for the year	1,175	49,172	161	50,508
December 31, 2012	4,927	259,288	17,746	281,961
Net book value
December 31, 2012	950	32,368	1,217	34,535

14

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

2011

	Employee
	home		Software
	ownership	Turnaround	development
	costs	costs	costs	Total
	SR 000	SR 000	SR 000	SR 000
Cost
January 1, 2011	4,359	218,652	17,585	240,596
Additions	1,518	51,067	1,378	53,963
December 31, 2011	5,877	269,719	18,963	294,559
Accumulated amortization
January 1, 2011	2,129	182,146	17,585	201,860
Charge for the year	1,623	27,970	—	29,593
December 31, 2011	3,752	210,116	17,585	231,453
Net book value
December 31, 2011	2,125	59,603	1,378	63,106

8. OTHER NON-CURRENT ASSETS

	2012	2011
	SR 000	SR 000
Employee home ownership receivables	15,623	19,485
Others	1,780	1,438
	17,403	20,923

9. BANK FACILITIES

The Company has bank facilities amounting to SR 187.5 million from a local commercial bank for overdraft, short term loans, letters of credit, guarantees etc. and bearing interest at commercial rates. The amount utilized at December 31, 2012 amounted to SR 24.9 million (2011: Nil).

10. ACCOUNTS PAYABLE

	2012	2011
	SR 000	SR 000
Trade accounts payable	11,541	11,125
Due to related parties (note 15)	59,376	28,839
	70,917	39,964

15

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

11. ACCRUED AND OTHER CURRENT LIABILITIES

	2012	2011
	SR 000	SR 000
Suppliers' accruals (note 15)	406,838	408,198
Technology and innovation costs (note 14,15)	1,557	1,331
Zakat and income tax (note 13)	117,875	141,887
Withholding tax	14,402	14,325
Others	30,179	12,323
	570,851	578,064

12. NON-CURRENT LIABILITIES

	2012	2011
	SR 000	SR 000
End-of-service indemnities	106,447	107,760
Employees' savings plan (note 17)	9,551	9,559
Employees' early retirement	—	2,946
Other deferred credits	5,682	6,309
	121,680	126,574

The movement in end-of-service indemnities provision is as follows:

	2012		2011
	SR 000		SR 000
January 1	107,760		96,244
Additional provision for the year	14,806		14,669
Utilization of provision	(16,119	)	(3,153	)
December 31	106,447		107,760

Other deferred credits represent capital advances received from two affiliated companies for their share of the capital cost of a commonly used Truck Loading Facility which is owned and managed by the Company. These advances are being amortized to income over a period of twenty years, which approximates the period over which the related assets are depreciated by the Company.

16

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

13. ZAKAT AND INCOME TAX

The principal elements of the zakat base are as follows:

	2012	2011	2010
	SR 000	SR 000	SR 000
Non-current assets	767,475	814,716	743,026
Spare parts and supplies	53,440	36,157	80,952
Non-current liabilities	121,680	126,574	111,383
Opening partners' equity	1,226,623	1,148,379	1,235,866
Dividends paid	2,161,299	1,845,995	1,368,130
Net income	2,505,688	2,179,229	1,460,075

Some of these amounts have been adjusted in arriving at the zakat charge for the year.

The movement in zakat and income tax provision is as follows:

	2012		2011		2010
	SR 000		SR 000		SR 000
Zakat
January 1	28,601		19,806		16,495
Provision for the year	33,043		28,601		19,806
(Over)/under provision for the prior year	(13	)	(52	)	40
Payments during the year	(28,588	)	(19,754	)	(16,535	)
December 31	33,043		28,601		19,806

	2012		2011		2010
	SR 000		SR 000		SR 000
Income tax
January 1	113,286		53,319		14,944
Provision for the year	254,604		226,385		150,740
(Over)/under provision for the prior year	(23	)	56		8,846
Payments during the year	(283,035	)	(166,474	)	(121,211	)
December 31	84,832		113,286		53,319

The charge for the year for zakat and income tax is as follows:

	2012		2011		2010
	SR 000		SR 000		SR 000
Zakat for the current year	33,043		28,601		19,806
(Over)/under provision of zakat for the prior year	(13	)	(52	)	40
Income tax for the current year	254,604		226,385		150,740
(Over)/under provision for income tax for the prior year	(23	)	56		8,846
Charged to retained earnings	287,611		254,990		179,432

17

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

Outstanding assessments

Zakat and income tax assessments have been finalized with DZIT up to 2004.

During 2012, the DZIT has withdrawn the 2004 assessment. The DZIT demanded the Company to pay SR 1,914 as final settlement for the 2004 assessment which was paid by the Company during 2012.

During 2011, the DZIT issued assessments for the years 2005 and 2006 demanding additional income tax, zakat, delay fine and withholding tax amounting to SR 6.4 million. Additionally, during 2012, the DZIT issued revised assessments for the years 2005 and 2006 demanding additional income tax, zakat, delay fine and withholding tax amounting to SR 7.9 million. The Company is currently reviewing the additional assessment received for the years 2005 and 2006.

Additional liabilities that may become payable in connection with zakat, income taxes, delay fines and costs related to the appeals will be borne by the partners of the Company.

The DZIT did not issue assessments for the year 2007 onwards as these years are in process by the DZIT.

14.GENERAL AND ADMINISTRATIVE EXPENSES

	2012	2011	2010
	SR 000	SR 000	SR 000
Employee benefits	11,106	7,684	5,602
Technology and innovation (note 15)	9,995	10,245	8,282
Depreciation	221	10	10
Other	4,117	2,282	2,441
	25,439	20,221	16,335

15. RELATED PARTY TRANSACTIONS AND BALANCES

Product sales are made to the Marketer. Trade receivables at December 31, 2012 and 2011 mainly represent receivables from the Marketer.

Certain feedstock material is purchased from the related parties. During 2012 such feedstock material purchased amounted to SR 17.9 million (2011: SR 15.5 million) (2010: SR 15.6 million).

By-product sales are made to the related parties. During 2012 by-product sales amounted to SR 100.8 million (2011: SR 82.8 million) (2010: SR 51.0 million).

All procurement services, including warehousing, transporting and arranging for delivery of materials related to the Company's spare parts, supplies and materials are provided by SABIC under the terms of the procurement services agreement entered between the Company and SABIC. Procurement services are provided by SABIC through the Shared Services Organization (SSO). SABIC charged the Company SR 4.2 million in 2012 (2011: SR 5.8 million) (2010: SR 4.7 million) as procurement services fees.

Advances to the related parties included under other receivables and prepayments represent advances to SSO.

In addition to procurement services, SSO provides accounting, human resources, information technology, engineering, and other general services to the Company. The total amount charged in respect of these services was SR 13.0 million in 2012 (2011: SR 9.9 million) (2010: SR 8.8 million).

SABIC Terminal Services Limited (Sabtank) provides shipping and material handling services to the Company. The total service

18

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

fee charged by the related party in this respect amounted to SR 12.7 million in 2012 (2011: SR 7.6 million) (2010: SR 6.0 million).

The partners also provide the Company with certain required technical, research and development, administrative and other services in accordance with executed agreements. The Company has a Technology and Innovation Service agreement with SABIC, under which SABIC provides research and development services to the Company. The Company is required to pay an annual fee under the agreement, which is calculated at one percent of Methanol sales plus the lesser of US $1 million or one percent of MTBE sales. A summary of the amounts charged by the partners is as follows:

	2012	2011	2010
	SR 000	SR 000	SR 000
SABIC - for technology and innovation services	9,995	10,245	8,282

During 2012, related parties incurred SR 13.4 million (2011: SR 29.4 million) (2010: SR 12.2 million) in relation to the POM and the shared power project which is reimbursable on an actual basis.

During 2012, the Company charged SABIC SR 12.5 million (2011: Nil) (2010: Nil) on account of SABIC's share in common utilities of the POM project under construction.

Suppliers' accruals included under accrued and other current liabilities include amounts payable to the related parties amounting to SR 21.7 million (2011: SR 4.8 million) (2010: SR 5.5 million).

16. OPERATING LEASE ARRANGEMENTS

	2012	2011	2010
	SR 000	SR 000	SR 000
Charges under operating leases recognized as an expense during the year	15,748	7,636	6,206

Operating lease charges represent rentals payable for vehicles, properties and land. Rentals are fixed at the start of each lease term for a period of 4 years for vehicles and 1 to 2 years for properties.

17. EMPLOYEES' SAVING PLAN

The Company administers a saving plan covering substantially all of the Company's employees. Participating employees may elect to contribute 1 to 15 percent of their basic salary. The Company matches cumulative employee contributions at a rate which increases by 10 percent each year until completion of ten years of participation, at which time Company's cumulative contributions equal the employee's cumulative contributions. The Company's contributions to the saving plan are accrued monthly and are not funded.

Employees are always fully vested in their contribution. The employees are fully vested in the Company's accruals generally after one year of participation in the plan. Employees may withdraw their contribution at any time under certain conditions, and have the option to repay such withdrawals. All fully vested amounts are payable to the employees upon retirement or termination of participation in the plan. Upon completion of ten years participation in the plan, Saudi employees may elect to continue their participation or to collect all fully vested amounts and to rejoin the plan as if for the first time.

18. STATUTORY RESERVE

In accordance with Regulations for Companies in Saudi Arabia, the Company has established a statutory reserve by appropriation of 10% of net income until the reserve equaled 50% of the share capital. This reserve is not available for dividends distribution.

19

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

19. RISK MANAGEMENT

Financial instruments carried on the balance sheet principally include cash and cash equivalents, accounts receivable from related parties and other receivables, accounts payable and accrued and other current liabilities.

Credit Risk is the risk that one party will fail to discharge its obligation and will cause the other party to incur a financial loss. Receivables are generally from related parties. Cash is substantially placed with banks with sound credit ratings. Trade accounts receivable are carried net of provision for doubtful debts, if any.

Interest Rate Risk is the risk that the value of financial instruments will fluctuate due to changes in the market interest rates. The Company has no significant interest bearing long term assets or liabilities.

Liquidity Risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments. Liquidity risk may result from an inability to sell a financial asset quickly at an amount close to its fair value. Liquidity risk is managed by monitoring on a regular basis that sufficient funds are available to meet any future commitments.

Currency Risk is the risk that the value of financial instruments will fluctuate due to changes in foreign exchange rates. Management monitors the fluctuations in currency exchange rates and manages their effect on the financial statements accordingly.

Fair Value is the amount for which an asset could be exchanged, or a liability settled between knowledgeable willing parties in an arm's length transaction. As the Company's financial instruments are compiled under the historical cost convention, differences can arise between their book values and fair value estimates. Management believes that the fair value of the Company's financial assets and liabilities are not materially different from their carrying values.

20. CONTINGENCIES AND CAPITAL COMMITMENTS

The Company was contingently liable for bank guarantees issued on behalf of the Company in the normal course of business amounting to SR 2.0 million (2011: SR 2.0 million) (2010: Nil).

At December 31, the Company had the following capital commitments:

	2012	2011	2010
	SR 000	SR 000	SR 000
Commitments for acquisition of property, plant and equipment	234,880	136,815	172,380

21. COMPARATIVE FIGURES

Certain prior year figures have been reclassified to conform with the current year's presentation. Such reclassifications have no impact on the Company's net income and the partners' equity.

22. SUMMARY OF PRINCIPAL DIFFERENCES BETWEEN ACCOUNTING STANDARDS ISSUED BY THESAUDI ORGANIZATION FOR CERTIFIED PUBLIC ACCOUNTANTS (SAUDI GAAP) ANDGENERALLY ACCEPTED ACCOUNTING PRINCIPLES IN THE UNITED STATES (US GAAP)

The Company is a Saudi limited liability company registered in the Kingdom of Saudi Arabia and prepares its financial statements in accordance with Saudi GAAP. Saudi GAAP varies in certain respects from US GAAP. The material differences between accounting principles, practices and methods under Saudi GAAP and US GAAP and their effect on net income and partners' equity for the years ended December 31, 2012, 2011 and 2010 are presented below, with an explanation of the adjustments. There are no material effects on the balance sheets or the statements of cash flows under Saudi GAAP for the purposes of reconciliation to US GAAP. In addition, comprehensive income under Saudi GAAP is the same as net income.

20

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

(a) Reconciliation of net income

	2012		2011		2010
	SR 000		SR 000		SR 000
Net income under Saudi GAAP	2,505,688		2,179,229		1,460,075
Adjustments:
(i) Zakat and income tax	(287,611	)	(254,990	)	(179,432	)
(ii) Deferred tax	11,015		6,070		6,140
(iii) Actuarial valuation adjustments for end of service indemnities	(14,331	)	337		2,881
(iv) Other	(435	)	3,044		(1,016	)
Net income under US GAAP	2,214,326		1,933,690		1,288,648

(b) Reconciliation of partners' equity

	2012		2011		2010
	SR 000		SR 000		SR 000
Partners' equity under Saudi GAAP	1,283,401		1,226,623		1,148,379
(ii) Deferred tax	23,078		12,063		5,993
(iii) Actuarial valuation adjustments for end of service indemnities	(98,988	)	(78,751	)	(31,481	)
(iv) Other	(9,208	)	(8,773	)	(11,817	)
Partners' equity under US GAAP	1,198,283		1,151,162		1,111,074

(c) Summary of reconciling items to US GAAP

(i) Zakat and income tax

Under Saudi GAAP, companies with both Saudi and foreign shareholders (commonly referred to as mixed companies) are required to present income tax and zakat as a separate line item in the statement of partners' equity. However, under US GAAP, income tax and zakat are viewed as expenses attributable to the Company's operations.  Accordingly, income tax and zakat are recognized in the statements of income.

(ii) Deferred tax

The Company has not recognized deferred income tax under Saudi GAAP. Under US GAAP, deferred tax assets and deferred tax liabilities are recognized for future tax consequences of events, which have been recognized in an entity's financial statements or tax returns. The Company recognized deferred tax assets and liabilities for the portion of temporary differences subject to income tax, that is, the portion of the taxable income attributable to the foreign partner. Deferred tax assets and liabilities attributable to zakat, which is also considered as a tax based on income, are not material and, as such, have not been recorded.

(iii) Actuarial valuation adjustment for end of serviceindemnities (“EOSI”)

Under Saudi GAAP, the Company's EOSI obligations is calculated as the current amount of the aggregate vested benefits to which each employee is entitled, assuming each employee had left the Company at the balance sheet date. However, under US GAAP, EOSI is deemed to be a defined benefit plan, and requires recognition of a liability, known as projected benefit obligation, for the actuarial present value as of the balance sheet date of all benefits attributed by the benefit formula to employee services prior to that date. Since EOSI is unfunded, under US GAAP, a liability is recognized equal to the projected benefit obligation. Net periodic pension costs comprise of service

21

NATIONAL METHANOL COMPANY (IBN SINA)

(A SAUDI LIMITED LIABILITY COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2012, 2011 AND 2010

costs, interest costs, and gains and losses. In addition, gains or losses that are not recognized immediately as a component of net periodic pension cost are recognized as increases or decreases in other comprehensive income/loss as they arise, and subsequently amortized to income using the corridor approach.

(iv) Other

Other adjustments include the impact on net income and partners' equity primarily for intangible assets capitalized under Saudi GAAP which should be expensed under US GAAP, interest-free loans to employees recorded at historical cost under Saudi GAAP that are recorded at amortized cost under US GAAP and certain items of property, plant and equipment which are capitalized under Saudi GAAP which should be expensed as incurred under US GAAP.

22