Saudi’s SAFCO Q4 Net Profit Falls 3%, Misses Forecasts

Saudi Arabian Fertilizer Co (SAFCO) reported a three per cent drop in fourth-quarter net profit on Monday, missing analyst forecasts.

The company, a unit of Saudi Basic Industries Corp (SABIC) , one of the world’s biggest petrochemical companies, made a net profit of SAR779 million ($207.55 million) in the three months to Dec. 31, according to a statement to Riyadh’s bourse. This compares with a profit of SAR802 million in the corresponding period a year earlier.

SAFCO did not provide a reason for the profit drop in the Enlgish results statement.

Analysts polled by Reuters on average forecast SAFCO would make a quarterly profit of SAR892.6 million.

The company’s 2014 annual profit was SAR3.17 billion, which was near-flat versus its 2013 profit of SAR3.16 billion.

SAFCO, a big producer of ammonia and urea, is dependent on global demand and prices. Since mid-2013, global players have voiced concerns over the sustained fall in urea prices due to China’s ramp up in output.

In the third quarter, SAFCO ended a five-quarter streak of decreasing year-on-year profits as urea prices recovered.