Safco Third-Quarter Profit Drops 36% on Prices, Tops Estimates

Saudi Arabian Fertilizer Co. (SAFCO), an affiliate of Saudi Basic Industries Corp., posted a 36 percent drop in third-quarter profit as product prices declined.

Net income fell to 734 million riyals ($196 million) from 1.15 billion riyals a year earlier, the Jubail-based company said in a statement to the Saudi stock market today. The mean estimate of 11 analysts was for a profit of data 689 million riyals, according to Bloomberg data.

Safco, 43 percent owned by Saudi Basic Industries, has seen product prices decline as global demand for fertilizers slows. Urea prices have fallen 21 percent this year, according to Green Markets prices compiled by Bloomberg.

The shares advanced 1.6 percent yesterday to 147.25 riyals in Riyadh, giving the company a market value of at 49 billion riyals. The stock has declined 3.3 percent this year compared with a 15 percent increase for Saudi Basic Industries and 20 percent gain for benchmark Tadawul All Share Index.

Sabic (SABIC) may report a 4 percent increase in third-quarter profit to 6.56 billion riyals, according to the mean estimate of 10 analysts compiled by Bloomberg.

To contact the reporter on this story: Glen Carey in Riyadh at gcarey8@bloomberg.net

To contact the editor responsible for this story: Shaji Mathew at shajimathew@bloomberg.net

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