Saudi Safco Q4 net triples on higher sale prices

Rise in profits is due to improving prices of petrochemical products and increasing sales
Saudi Safco Q4 net triples on higher sale prices
Operating profit and gross profit for Q4 both rose by 156 percent with operating profit reaching $238.9m and gross profit reaching $244.7 (Getty Images)
By Reuters
Sun 16 Jan 2011 10:43 PM

Saudi Arabian Fertilizers Co (Safco) said on Sunday its net profit nearly tripled in the fourth quarter buoyed by higher prices, beating estimates.

Safco made $266.7m in the quarter after $100.2m a year ago but revised its net profit for the fourth quarter of 2009 to $89.3m, the company said in a statement posted on the bourse website.

The results beat analysts' average forecast of $205m.

"The rise in profits for 2010 and the fourth quarter of 2010 compared to the same periods the year earlier is due to improving prices of petrochemical products and increasing sales," the statement said.

Saudi Arabian Basic Industries Corp (SABIC) has a 42.9 percent stake in Safco.

Operating profit and gross profit for the fourth quarter both rose by 156 percent with operating profit reaching $238.9m for the fourth quarter and gross profit reaching $244.7 for the same period, the statement said.

Full year net profit rose by 79 percent to $853.2m. Earnings per share for the year reached $3.4, it said.

Shares at Safco closed 0.2 percent lower on Sunday, before the earnings were announced.

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