Safco doubles net profits in Q1 on higher sales and prices

14 April 2005 10:11  [Source: ICIS news]

LONDON (CNI)--Saudi Arabian Fertilizer Company’s (Safco) net profits for the first quarter of this year more than doubled compared with the same period last year on increased sales and a rise in prices, CNI learned Thursday.

 

Safco, an affiliate of Saudi Basic Industries Corp (Sabic), reported first quarter net profits at Riyal 236.3m (Euro49m/$63m), up from Riyal 116.8m last year.

 

The company did not reveal revenues or operating profits for the first three months of the year. But Mohammed Al-Mady, Sabic vice chairman and chief executive, said the rise in net profits could be attributed to a 30% increase in sales and 29% higher sales prices for urea during the first quarter 2005 compared with 2004.

 

Profits in the first quarter fell 6% compared with profits during the fourth quarter last year, although Safco did not reveal any specific figures. The decline was blamed on a drop in product prices and a decrease in the company’s shared profits with sister companies. Al-Mady said product prices now seem more stable.

 

He also confirmed that the company’s expansion project, which will boost total fertiliser capacity to 5m tonne/year at Al Jubail, is progressing as planned and will come onstream in the first quarter of 2006. The new complex will have capacities 1.1m tonne/year of ammonia and 1.1m tonne/year of urea.

 

By: Hilde Ovrebekk
+44 20 8652 3214

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