Saudi’s Yansab Q4 Profit Drops 31% On Plant Shutdown

Saudi Arabia’s Yanbu National Petrochemical Co (Yansab) posted a 31 per cent slump in fourth-quarter net profit on Monday, citing a shutdown at its plant for the decline.

The firm made a net profit of SAR442.2 million ($117.9 million) in the three-month period to Dec. 31, it said in a bourse filing, down from SAR640.8 million during the same period of 2012.

The earnings were well below the average forecast of seven analysts polled by Reuters, who expected a net profit of SAR619.3 million for the quarter.

Yansab attributed the fall to the shutdown of its complex and an increase in its Zakat payment. Zakat is a charitable donation which firms in Saudi Arabia are obligated to pay.

Yansab, a subsidiary of Saudi Basic Industries Corp , was forced to shut its petrochemicals complex for three weeks for maintenance at the end of October due to a problem with a water cooling network.

It estimated the financial loss from the shutdown, at the time, as SAR160 million.

Full-year profit for 2013 was higher year-on-year. Yansab reported a net profit of SAR2.64 billion, versus SAR2.45 billion in 2012, citing higher prices for its products and lower financing costs.