Riyadh – Mubasher: Saudi Arabian Fertilizer Co. (SAFCO) on Wednesday doubled its profits for the second quarter of 2018, while its results registered a profit increase for the first six months of the year.

SAFCO achieved SAR 410.46 million ($109.43 million) in net profits in the period between April and June, up 100.87% from SAR 204.34 million ($54.48 million) in the same period of 2017.

Quarter-on-quarter, profits jumped 73.04% from SAR 237.2 million, SAFCO said in a filing to the Saudi Stock Exchange (Tadawul).

Gross profits amounted to SAR 499.24 million in Q2-18, up 72.96% year-on-year from SAR 288.65 million.

SAFCO attributed its profit surge to higher sales quantities and average selling prices of its urea products. Other income also increased on the back of dividends received from available-for-sale investments.

As for the first half of 2018, the Saudi fertiliser firm posted SAR 647.66 million in profits, registering a year-on-year increase of 3.18% from SAR 627.7 million.

Its gross profit rose 9.66% to SAR 857.56 million in H1-18 versus SAR 782 million in the year-ago period.

Earnings per share (EPS) amounted to SAR 1.55 in H1-18 against SAR 1.51 in the corresponding six months of 2017, SAFCO’s financial results showed.

Sales quantities and higher urea sales contributed to the six-month profit growth. However, the increased was subdued by a rise in costs due to a restructure meant to support the company’s strategy and help it meet future challenges, SAFCO highlighted.

“Decline in the company's share of the profits of Ibn Al-Baytar Company has partially [limited] the positive impact of the increase in the quantity and average selling price,” SAFCO added.

SAFCO previously posted SAR 237.2 million in profits in Q1-18, down 44% year-on-year from SAR 423.36 million due to an increase in expenses for the restructuring progress.

SAFCO’s stock closed Wednesday in the red, falling 0.93% to SAR 63.80.