The 13% decline of Saudi Arabian Fertilisers Company's (Safco) second quarter’s profits to $210.7 million compared to $241.8 million in the prior-year period was due to reduction of ammonia sales because of some unexpected halts of production, according to Mohamed al-Mady, CEO of Saudi Arabian Basic Industries Corp (SABIC), the parent company of Safco.
Commenting on the results, al-Mady told Saudi's Al-Arabiya TV channel that the delay of supplying bigger shipments, which we were supposed to deliver it in the second quarter was also another reason behind the profit’s decline.
“Urea prices were down $14 a tonne in this period, and an increase of employees wages were among the other reasons,” al-Mady said.
Analysts had forecast average second-quarter earnings of $265.1 million, in a Reuters survey.
Saudi Arabian Basic Industries Corp (SABIC) holds a 42.9% stake in Safco, which is one of the largest fertiliser producers in the world.