24/07/2016 05:52 AST

Saudi Arabia Fertilizers Company (Safco) met analyst forecasts on Thursday but extended its earnings slump, as its second-quarter net profit halved year on year as product prices remained low.

Safco, a unit of Saudi Basic Industries Corp (Sabic), made a net profit of SR299 million ($79.7 million) in the three months to June 30, compared with the SR596 million it reported in the year-earlier period, it said in a bourse statement.

The firm, which reported declining profits in 11 of the preceding 12 quarters according to Reuters data, was forecast by five analysts to make SR290.5 million during the quarter.

Safco cited lower selling prices for its products for the profit decrease, but added an increase in the quantities of products sold mitigated the impact on earnings. It didn't elaborate.

Like many petrochemical firms in the kingdom, Safco's earnings have been hit hard by falling oil prices, which have dragged down product prices and reduced the benefits to their margin of subsidised energy and feedstock costs.

These subsidies are being reformed though, a move which is expected to increase production costs by 8 percent in 2016, Safco said in December.

Last month, Safco blamed low prices and challenges in global markets for its decision to halve its planned dividend for the first half of this year.

Safco is also a big producer of ammonia and urea and, since mid-2013, manufacturers worldwide have voiced increasing concerns over the continued fall of urea prices due to China's increased output.

However, it has started to benefit from the start-up of the delayed Safco 5 plant, which began commercial operations in July last year and has an annual production capacity of 1.1 million tonnes of urea.

Trade Arabia

Saudi's SAFCO continues earnings slump


Saudi Arabia Fertilizers Co (SAFCO) missed analyst forecasts and extended its earnings slump on Monday, reporting a 68 percent decline in third-quarter net profit.

SAFCO, a unit of Saudi Bas

Gulf Times

Safco, Sabic, hire investment banks to advise on Ibn Al-Baytar sale


Two Saudi petrochemical giants have hired investment banks to advise on the potential sale of a stake in the Ibn Al Baytar fertiliser company. Saudi Arabia Fertilisers Co (Safco) has hired Samba Capi


SAFCO net profit dips 51.5% to SR286m


Saudi Arabia Fertilizers Co. (SAFCO) missed analysts' forecasts and extended its earnings slump, reporting a 51.5 percent decline in first-quarter net profit on Sunday. SAFCO, a unit of Saudi Basic

Arab News

Ticker Price Volume
SABIC 121.95 3,746,252
STC 83.22 201,653
SAICO 20.39 1,010,861
ALMARAI 59.31 892,729
PETRORABIGH 29.45 1,293,815
SACO 131.99 6,619
BJAZ 13.05 30,152,720
SAFCO Sector Market
Dividend Yield (%)
Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
SABIC 121.95 -0.73 (-0.60%)
MAADEN 57.04 -0.35 (-0.61%)
YANSAB 72.26 -1.56 (-2.12%)
KAYAN 14.49 -0.34 (-2.30%)
NIC 20.87 0.51 (2.50%)
Etisalat is region’s most valuable brand — report


Abu Dhabi-based telco Etisalat has been named as the region’s most valuable brand for 2018, rising by 40 percent to $7.7 billion in the past year, according to consultancy Brand Finance, with leading

Arab News

Al Khaliji posts 5.3% rise in its net profit to QR169.6mn in 1st quarter


Al Khalij Commercial Bank’s (Al Khaliji) net profit in the first quarter of 2018 stood at QR169.6mn, representing a 5.3% increase over the same period last year, it was announced yesterday.

Gulf Times

Aldar starts handover of two prime UAE properties


Aldar Properties, a leading UAE-based real estate developer, said it has started the handover of two of its premium developments in Abu Dhabi - Nareel Island and Al Merief.

Nareel Island

Trade Arabia

Bahrain's Investcorp sells Dutch precision component manufacturer


Investcorp, the Bahrain-based alternative investment firm that has US$21.3 billion in assets under management sold Veco Precision, a Netherlands-based manufacturer of high-precision metal components,

The National

Dana Gas plans to postpone decision on dividend


Dana Gas said on Thursday it planned to postpone the decision on the previously recommended 5 per cent cash dividend payment.

The board, at its meeting on the March 14 had taken the positi

Gulf News