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Safoc... ammonia sales fall.

Safco Q4 net profit falls 3pc, misses forecasts

RIYADH, January 12, 2015

Saudi Arabian Fertilizer Company (Safco) reported a 3 per cent drop in fourth-quarter net profit on Monday, missing analyst forecasts due to lower ammonia sales and reduced profits from a sister company.

The company, a unit of Saudi Basic Industries Corp (Sabic) , one of the world's biggest petrochemical companies, made a net profit of SR779 million ($207.55 million) in the three months to December 31, according to a statement to Riyadh's bourse. This compares with a profit of SR802 million in the corresponding period a year earlier.

In an Arabic statement, Safco said ammonia sales fell in the fourth quarter and it also received reduced profits from a sister company, although higher product sales prices partly offset these declines.

Analysts polled by Reuters on average forecast Safco would make a quarterly profit of SR892.6 million.

The company's 2014 annual profit was SR3.17 billion, which was nearly flat versus its 2013 profit of SR3.16 billion.

Safco, a big producer of ammonia and urea, is dependent on global demand and prices. Since mid-2013, global players have voiced concerns over the sustained fall in urea prices due to China's ramp up in output.

In the third quarter, Safco ended a five-quarter streak of decreasing year-on-year profits as urea prices recovered. - Reuters
 




Tags: sabic | Saudi | fertilizer | Safco |

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