RIYADH, 14 April 2005 — Saudi Arabian Fertilizer Co. (SAFCO) said yesterday it doubled first quarter net profits against the same period last year on increased sales volume and prices, but predicted prices were unlikely to rise further. Net profits rose 102 percent to SR236.3 million ($63 million) from SR116.8 million in the first quarter of 2004, as sales volumes grew 30 percent and urea prices increased by 29 percent, SAFCO Chairman Mohamed Al-Mady said.
But profits were down 6 percent from the final quarter of last year, reflecting a recent easing in sales prices and a reduction in SAFCO’s share of profits in its sister companies. SAFCO is an affiliate of petrochemicals giant Saudi Basic Industries Corp. (SABIC).
SAFCO shares rose slightly in opening trade on Wednesday after the announcement, gaining nearly 1 percent to SR635. The shares hit a high of SR738 earlier this month.
Commenting on SAFCO’s current product prices and future expectations, Al-Madi said they were seeing “a degree of stability and we expect they will be close to last year’s levels”. Al-Mady said plans for a fourth fertilizer production plant in Jubail were going ahead as planned. The company has said the new production facilities at SAFCO IV should be operational in the first quarter of next year, raising output to 2.6 million tons a year of urea and 2.3 million tons of ammonia.