Safco Q2 profit falls 13pc; misses forecast
Riyadh, July 10, 2011
Saudi Arabian Fertilizers Co (Safco) on Sunday said its quarterly net profit fell 13 percent, missing analysts expectations for the second straight quarter.
Safco made 790 million riyals ($210.7 million) in the second quarter, compared with 907.2 million riyals in the prior-year period when its results were boosted by sale of land.
Analysts had forecast average second-quarter earnings of 994.3 million riyals, in a Reuters survey.
The company said sales of ammonia declined in the second-quarter and average urea prices were also lower on a sequential basis. Operating profits at Safco rose 36 percent to 757 million riyals versus 558 million riyals year-ago.
Safco said it would pay a dividend of 6 riyals a share for the first half of the year. Saudi Arabian Basic Industries Corp holds a 42.9 percent stake in Safco.
Safco shares have gained 17.5 percent year-to-date. - Reuters
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