21 October 2013 11:00 [Source: ICIS news]
KARACHI (ICIS)--Saudi Arabia Fertilizers Co (SAFCO) said on Monday its third-quarter net profit fell 36.1% year on year to Saudi riyal (SR) 734m ($196m) due to lower sales prices of its products despite high sales volume.
Its gross profit for the September quarter 2013 was down 34.7% to SR695m, while operating profit fell 35.0% to SR676m, the Jubail-based company said in a statement issued to the Saudi stock exchange.
For the first nine months of the current year, SAFCO’s net profit fell 13.3% to SR2.36bn from the previous corresponding period.
SAFCO, which is 43%-owned by Saudi petrochemical giant SABIC, has seen declines in product prices as global demand for fertilizers slows down, according to analysts.
“The [financial] result was in line with market expectations, as urea prices globally have fallen 21% this year,” said a Dubai-based analyst at a foreign bank.
“As a major player in the region, SAFCO has to bear the brunt of the falling prices,” he said.
($1 = SR3.75)
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