Saudi Safco net profit falls 11.6 percent, missing view

Saudi Arabian Fertilizer Company's net profit fell 11.6% in Q2. (File photo: Reuters)

Saudi Arabian Fertilizer Co. (Safco) said on Sunday its second-quarter net profit fell 11.6 percent from a year ago, missing analysts’ forecasts, as higher sales volumes were undermined by low prices.

The company, a unit of Saudi Basic Industries Corp. (Sabic), one of the world's biggest petrochemical companies, said it made 693 million riyals ($185m) in the second quarter, compared to 784m riyals a year ago and 932m in the first quarter.

A group of 11 analysts polled by Reuters had forecast on average that Safco would make 788m riyals.

The company said in a bourse statement that the fall in net income over the second quarter of last year was due to low prices for the fertilizer urea, but that overall sales volumes had risen.

Meanwhile, Yanbu National Petrochemical Co. (Yanpet) said on Sunday its second-quarter net profit grew 3.2 percent on an annual basis to 671m riyals ($179m) due to lower financial charges, despite a fall in its sales.

The company, another unit of Sabic, said gross profit had fallen by 2.1 percent in the same period.

However, while sales were lower than a year ago, they were higher than in the first quarter of this year, Yanpet said in a bourse statement.

Last Update: Wednesday, 20 May 2020 KSA 09:41 - GMT 06:41