Riyadh-based SABIC Agri-Nutrients Co. Ltd. posted a 78% drop in second-quarter net profit after Zakat and tax, to SAR651 million (approximately $173.4 million at current exchange rates) from SAR3.03 billion the previous year. Revenues fell by 54% year-over-year, to SAR2.63 billion from SAR5.7 billion.
The company cited a 52% decline in average selling prices for its product during the quarter, as well as a 3% fall in sales volumes.
For the half-year, SABIC Agri-Nutrients Co.’s net profits after Zakat and tax shrank by 71%, to SAR1.63 billion from SAR5.54 billion last year. Six-month revenues were down 48%, to SAR5.39 billion from SAR10.36 billion. Earnings per share for the first half were SAR3.43 versus SAR11.63 in the same prior-year period.
CEO Abdulrahman Shamsaddin highlighted the company’s completion in the second quarter of the procedures to acquire a 49% stake in Dubai-based agri-nutrient blender and distributor ETG Inputs Holdco Ltd. (GM April 14, p. 25), “which reflects SABIC Agri-Nutrients Co.’s focus on growth in the value chain,” he said.
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 in Arabian Industrial Fibers Co. (3.87%).