Shares in SAFCO rose by over 6 percent after the company unveiled a better-than-expected 33 percent rise in its net profit for the quarter to SR698 million ($186.1 million), against SR525 million in the year-earlier period.

The median forecast of seven banks surveyed by Reuters was for a net profit of SR592.9 million.

It was SAFCO's highest quarterly net profit since the third quarter of 2008, when SAFCO and global chemical giant Saudi Basic Industries Corp. (SABIC), first felt repercussions from the global financial crisis.

SAFCO said in a statement on the bourse website that prices during the first quarter improved compared to the year-earlier period but sales volumes were up compared only to the fourth quarter. 

"These numbers are very good although prices did not rise by that much. For instance, prices of urea - SAFCO's main product - rose by between 2 and 3 percent," said Hesham Abu Jamea, head of asset management at Bakheet Investment Group.

SAFCO gave no details on the value or volume of sales for the first quarter. The company had reported a SR335 million net profit for the fourth quarter of 2009.

"Sales volumes were bound to be higher than their level in the fourth quarter which witnessed a full-month stoppage for maintenance. They must have come back to normal production levels during the first quarter," Abu-Jamea said.

Earnings per share rose to SR2.80 in the first quarter, from 2.10 riyals a year earlier, SAFCO said. Operating profit for the period rose 41.4 percent to SR618 million.

"SAFCO makes gains from investment in affiliates such as Ibn Al-Baitar fertilizers firm. That is why operating profit is lower than net profit," said Abu Jamea.

Shares in SAFCO on Saturday added almost three times first-quarter earnings per share to SR144.50.

The stock had risen 12.6 percent this year, which is above both the all-share index and the petrochemical stocks index but below a 20 percent gain clocked by parent company SABIC.

"We expect the stock to rebound today from its recent weakness. We maintain our 'underweight' rating on valuation concerns with a price target of SR128," NCB Capital said in a note commenting the results.