Safco posts $29.4 million net profit for 2002
The Saudi Arabian Fertilizer Company (Safco) made a profit of 110.4 million Saudi riyals ($29.4 million) in 2002 compared to SR 254.7 million ($68 million) in 2001. SAFCO increased its production by eight percent and raised sales volumes by 3 percent compared to 2001 in an effort to offset the decline in prices.
According to Chairman of the Board of Safco, Mohammad H Al-Mady, the last quarter of the year realized a profit of SR 37.35 million ($10 million) compared to the SR 499 million in the same period of 2001.
He attributed the decrease in Safco's profits to a decline in product prices due to the global economic recession. This caused a decrease in demand which in turn affected profitability coupled with increased competition with new capacities coming on stream in different parts of the world.
Safco is a manufacturing affiliate of the Saudi Basic Industries Corporation (Sabic). It is a producer of ammonia, urea, sulphuric acid and melamine. The company is 41 percent owned by Sabic, 49 percent by private Saudi shareholders and 10 percent by Safco employees. — (menareport.com)
© 2003 Mena Report (www.menareport.com)