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

18/10/2016

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

11/10/2016

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

Gulfnews

SAFCO net profit dips 51.5% to SR286m

21/04/2016

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
QNBK 161.50 144,143
SABIC 129.20 5,384,386
CHEMANOL 10.70 7,933,735
EEC 20.76 5,394,179
WALAA 28.60 174,561
EXTRA 60.80 293,094
JAZIRATKFL 22.12 307,152
SAFCO Sector Market
P/E
Price/BookValue
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 129.20 -0.20 (-0.16%)
MAADEN 58.00 -0.80 (-1.37%)
YANSAB 74.10 -1.90 (-2.50%)
KAYAN 18.14 1.06 (6.20%)
NIC 22.44 -0.74 (-3.20%)
Nakheel opens Dh60m retail Pavilion at Badrah

23/07/2018

Property developer Nakheel on Sunday announced the completion of a new Dh60 million retail Pavilion at Badrah in Jebel Ali. The new retail complex, operated by Nakheel Malls, will offer more than 800

Gulf News

DIB launches new Skywards co-brand credit cards

23/07/2018

Dubai Islamic Bank (DIB) has partnered with Emirates Skywards to launch new credit eards tailored specifically to offer exceptional value to the country’s growing community of frequent flyers.

Gulf News

UDC finalises construction of Al Mutahidah Towers’ connecting bridge

23/07/2018

United Development Company, a leading Qatari shareholding company and master developer of The Pearl-Qatar, has marked another milestone in the development of Al Mutahidah Towers with the construction

The Peninsula

Kuwait consumer spending rebounds in June: NBK

23/07/2018

Kuwait’s consumer spending index increased 8.5 per cent year-on-year (y/y) in June, supported by a pickup in the consumption of durables and non-durables, said the National Bank of Kuwait (NBK) in it

Trade Arabia

SEC, GE stress on long-standing partnership

23/07/2018

Saudi Electricity Company (SEC) and GE, in a statement, have stressed on the importance of their long-standing partnership for both the companies.

For almost 40 years, SEC and GE have par

Trade Arabia