The Saudi Arabian Fertilizer Company (SAFCO) reported first quarter 2005 net profits of SR 236.3 million (US$ 63 million) compared to SR 116.8 (US$ 31.14 million) profits in the same period in 2004.
Mohammed Al-Mady, SABIC Vice Chairman and Chief Executive Officer, said that the Q1 2005 profits were 102% higher than those in the same period in 2004 due to a 30% rise in overall sales and an increase in Urea prices of 29%.
Al-Mady added that the 6% decrease in profits in Q1 2005 compared to Q4 2004 is attributed to the decline in some products sales prices as well as a decrease in the company’s shared profits of sister companies.
Considering the existing status quo and future forecasts, Mr. Al-Mady outlined that product prices are now seeing some stability. Furthermore, SAFCO expansion project implementation works are on track. Commercial production is expected to go live on stream towards the beginning of 2006. The total annual capacity will go over 5 million MT.
