Riyadh—Saudi Basic Industries Corp. (Sabic) is reportedly looking at strengthening its fertilizer business through acquisitions, as well as its chemicals and polymer businesses, but may sell some assets in its Specialities Plastics unit. According to media reports quoting the Saudi company’s acting CEO, Yousef Abdullah al-Benyan, Sabic wants to strengthen both its own and affiliate Saudi Arabian Fertilizer Co.’s (Safco) fertilizer businesses. In the case of Safco, it is understood this may include seeking investment opportunities outside of the Kingdom for nitrogen and speciality urea products. Sabic owns a 42.99 percent interest in Safco. As part of Sabic’s review of investments, the sale of its 50 percent stake in ammonia and urea producer National Chemical Fertilizers Company (Ibn Al-Baytar) to Safco (GM March 25, p. 14), and other moves are are reportedly being assessed. Safco is Sabic’s joint-venture partner in Ibn-Al-Baytar, which also produces compound and liquid fertilizers. Sabic extended its earnings’ slump in the first quarter, reporting a 13 percent decline in net profit to SAR3.41 billion ($908.9 million) in the three months to March 31, 2016, down from SAR3.93 billion in the same year-ago period. The company attributed the profit fall to lower average sales prices. Safco also extended its earnings’ slump in the first quarter, reporting a 51 percent fall in net profit of SAR286 million ($76.2 million) in the first three months of 2016, down from SAR590 million a year ago. The company cited lower selling prices for the first-quarter decline in profit, although this was partly offset by an increase in quantities sold.
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