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
SAICO 10.80 239,189
SABIC 124.80 2,756,706
DIB 5.25 3,629,356
WALAA 20.90 156,306
APPC 47.90 363,668
SIECO 92.10 442,742
SAFCO 84.50 1,161,250
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 124.80 -1.00 (-0.80%)
MAADEN 45.00 -0.45 (-1.00%)
YANSAB 63.70 0.60 (0.95%)
KAYAN 15.50 -0.32 (-2.03%)
PETROCHEM 25.65 -0.05 (-0.20%)
Adnoc begins production and export of Umm Lulu crude grade


State-owned Abu Dhabi National Oil Company began production and loading of crude from its offshore Umm Lulu and Sarb fields with commercial shipment to start next month, according to a company spokes

The National

CBD reports 26.8% jump in 9-month profits


Commercial Bank of Dubai (CBD) on Wednesday reported a net profit of Dh843 million for the first nine months of 2018, up 26.8 per cent compared to the same period last year.

For the third q

Gulf News

National Bank of Bahrain Jan-Sept net profit jumps 11%


National Bank of Bahrain (NBB) said it delivered strong financial results and continued growth for the first nine months of 2018 marked by an 11.3 per cent rise in net profit, which reached 55 millio

Gulf News

Doha Bank posts QR737m net profit for third quarter


Doha Bank recorded a net profit of QR737m for the third quarter of 2018 as against QR1.04bn for the same period last year after taking significant loan loss provision in relation to the bank’s overse

The Peninsula

UDC posts net profit of QR416m


United Development Company (UDC), a leading Qatari shareholding company and master developer of The Pearl-Qatar, reported a net profit of QR416m on revenues of QR1.29bn for the nine months ended Sept

The Peninsula