SSC GROUP Headquartered in Dubai, United Arab Emirates, was formed in 1992, the idea for the company having been formed from eight years experience in commodities transactions. The company currently focuses on few areas of commodities transactions: Urea, Cement, Concrete, Sugar, Metal and Crude Oil. has, in the three years it has been in existence, grown its Urea transactions to in excess of 60 Million metric tons per year. Its concrete business, the newer of the two areas of specialization, is currently generating approximately 20 Million metric tons of sales per year. Currently is exploring other market opportunities in commodities to enable the company to expand its presence.

MOST EFFICIENT ON YOUR FERTILIZER NEEDS

We have always marketed products and services to the world market with in the last two years since our introduction of our many new products we have become a major player in this business. To ensure greater product availability, our products being supplied all over the world and distributors are being set up as you are reading this. We are excited about our new products, customers and continued growth. We hope you are a part of our company growth.

Financial Report

In 2005, our company delivered the strongest financial performance in its history. Net income was $13.3 billion. We outperformed our peers in return on capital employed, a key measure of overall company performance. We strengthened our balance sheet, reducing our debt level by $1.3 billion and ending the year with cash and marketable securities of $10.7 billion. Most significant, we achieved a total stockholder return for the year of 25.5 percent and accomplished our five-year goal to be a leader among our three largest peers in this measure, posting an annualized return of 7.4 percent for 2000 through 2004. This was 9.7 percentage points higher than Standard & Poor's 500 return over the same five-year period.

We increased our annual dividend payments for the 17th consecutive year and returned value to stockholders through the launch of a common stock buyback program of up to $5 billion by 2007. At the end of 2004, we had repurchased shares in the open market totaling more than $2 billion.

We accomplished all of this while having our safest year ever

Right Strategies

Our performance was driven by executing well against the right strategies at the right time. In upstream, our strategic focus is on growing profitability in core areas and building new legacy positions. Our trading strategy targets the commercialization of our significant international resource base for delivery to North American and Asian markets. In downstream, our strategic priority is to enhance returns by focusing on areas of market and supply strength.

Strong Focus, Execution, Growth

While the industry benefited from high commodity prices this past year, SSC performance was enhanced by strong execution against its strategic objectives. Specific achievements included strong exploration results. We also continued our portfolio rationalization through the sale of non strategic production assets at a time when we could take advantage of high market prices. In 2005 our downstream operations were aligned functionally across the globe. This resulted in operating and efficiency gains and produced significant earnings improvements.

A New Equation

We are at a strategic inflection point in our business. The convergence of growing demand, challenging resource locations, a need for greater diversity of energy supplies, a complex geopolitical environment, and a shifting competitive landscape have created a fundamentally new energy equation.

SSC is strongly positioned to succeed in this new environment. We have robust strategies that have been tested under a variety of market conditions. We are committed to achieving and maintaining world-class levels of operating and capital discipline. We are leveraging technology to create operating efficiencies in the near term and develop promising new energy sources for the long term. We are continuing to build on our efforts to be the partner of choice in strategic energy regions of the world.

A strong reflection of our commitment to partnership occurred in 2005 when our Board of Directors held a meeting in Angola to review our business operations, witness our community engagement projects and visit with the country's leadership. It was one of the first times a Board from a major multinational company has met in sub-Saharan Africa, and it was an affirmation of our continuing commitment to this continent.

Even with sound strategies and a strong balance sheet, the critical factor for success is having the right people in the right positions doing the right things. SSC people performed superbly in 2005, and we are continuing to enhance the capabilities and commitment of our global work force. We have a strong management team with a proven track record and a dedicated, experienced Board. We look forward to the opportunities we face in the coming year to increase competitive returns and stockholder value and to deliver the energy needed to fuel economic development and growth around the world.

Thank you for your continued support.