Saudi’s SAFCO Q1 net profit drops 9.6% on softer product price

14 April 2014 03:55 Source:ICIS News

KARACHI (ICIS)--Saudi Arabia Fertilizers Co (SAFCO) first-quarter 2014 net profit fell 9.55% year on year to Saudi riyal (SR) 843m ($225m) as higher costs of sales and falling products prices squeezed margins even as sales volumes rose, the company said on Sunday.

Its gross profit for the quarter ending 31 March was down 3.87% to SR820m, while operating profit fell 3.98% to SR797m, the Jubail-based company said in a statement issued to the Saudi stock exchange.

SAFCO, which is 43%-owned by Saudi petrochemical giant SABIC, said decline in profits from associate companies also bit profits.

“Sales volume increased which consequently pushed up cost of sales, while prices of products fell during the quarter,” SAFCO said in a brief statement.

“In addition associated companies including Ibn al-Bitar company also witnessed a decline during the quarter,” the ammonia and urea manufacturer added.

($1 = SR3.75)

By Aamir Ashraf