JEDDAH: Saudi Arabian Fertilizer Co. (SAFCO) reported a 3 percent drop in fourth-quarter net profit, missing analyst forecasts due to lower ammonia sales and reduced profits from a sister company.

The company, a unit of Saudi Basic Industries Corp. (SABIC), one of the world’s biggest petrochemical companies, made a net profit of SR779 million ($207.55 million) in the three months to Dec. 31, according to a statement to Riyadh’s bourse. This compares with a profit of SR802 million in the corresponding period a year earlier.

In an Arabic statement, SAFCO said ammonia sales fell in the fourth quarter and it also received reduced profits from a sister company, although higher product sales prices partly offset these declines.

Analysts polled by Reuters on average forecast SAFCO would make a quarterly profit of SR892.6 million.

The company’s 2014 annual profit was SR3.17 billion, which was nearly flat versus its 2013 profit of SR3.16 billion.

SAFCO, a big producer of ammonia and urea, is dependent on global demand and prices. Since mid-2013, global players have voiced concerns over the sustained fall in urea prices due to China’s ramp up in output.

In the third quarter, SAFCO ended a five-quarter streak of decreasing year-on-year profits as urea prices recovered.