Riyadh-based SABIC Agri-Nutrients Co. Ltd. posted a 55% drop in third-quarter profit after Zakat and tax, to SAR1.05 billion (approximately $279.7 million at current exchange rates) from the year-earlier SAR2.33 billion, according to a company filing to Saudi’s Tadawul exchange on Oct. 31.
SABIC Agri-Nutrients cited a 43% decline in the average selling prices of the company’s products during the quarter as driving the profit decline, which was partially offset by a 6% increase in sales volumes. Third-quarter revenue fell 40% year-over-year, to SAR2.67 billion from SAR4.42 billion.
For the nine months to Sept. 30, the company reported a 66% decline in profit after Zakat and tax, to SAR2.68 billion from SAR7.87 billion, driven by a 46% slide in product average selling prices. Nine-months revenue fell by 45%, to SAR8.06 billion from SAR14.77 billion.
Looking ahead, SABIC Agri-Nutrients – as cited by Middle East news portal Zawya – sees resilient global demand and higher-cost wintertime energy supply with lower-than-expected Chinese export volumes as supporting the urea market in the fourth quarter.
The company also pointed to healthy demand from major importers in the Americas, Africa, and Europe ahead of the new crop-planting season, and an estimated 1.5-2 million mt in Indian urea tenders as supporting global trade through the end of this year.
SABIC Agri-Nutrients Co. is 50.1% owned by Saudi Basic Industries Corp. (SABIC). Its fully owned subsidiaries include National Chemical Fertilizer Co. and SABIC Agri-Nutrients Investments Co. It also owns a 50% stake in Al-Jubail Fertilizer Co. and a 33.33% holding in Bahrain-based nitrogen fertilizer producer Gulf Petrochemicals Industries Co. Its product portfolio includes ammonia, urea, DAP, and specialized fertilizer.
The company also owns minority interests in Yanbu National Petrochemical Co. (1.69%) and Arabian Industrial Fibers Co. (3.87%).