Sabic Agri-Nutrients’ profits grow by 8.2% during Q2 to SAR 705 million

Sabic Agri-Nutrients Co. revealed an increase in net profit during the second quarter to 705 million riyals, compared to 651 million riyals in the same quarter of last year, by 8.2%. This came after today’s announcement of the preliminary financial results for the period ending on June 30, 2024 (six months).

Operating profit reached 678 million riyals in the second quarter, compared to 678 million riyals in the same quarter of the previous year.

Ownership rights (after excluding non-controlling interests) amounted to 17.5 billion riyals in the 6-month period, compared to 16.4 billion riyals in the same period last year, an increase of 6.9%.

Earnings per share in the current period reached 3.25 riyals, compared to 3.43 riyals in the same period last year.

The reasons of increase in sales/ revenue for the current quarter compared to the same quarter last year:

* increase in sold quantities for the company by 6%.

This increase was limited by:

* Decrease in average selling prices by 4%.

The reasons of increase in net profit for the current quarter compared to the same quarter last year:

* Increase in the revenue due to increase in sold quantities

* Increase in finance income

This increase was limited by:

* Higher cost of sales.

The reasons of increase in sales/ revenue for the current quarter compared with previous quarter:

* Increase in sold quantities for the company by 25% as a result of the completion of scheduled Turnaround of the company’s third plant for the production of urea and ammonia during the previous quarter.

This increase was limited by:

* Decrease in average selling prices by 15%.

The reasons of decrease in net profit for the current quarter compared to the previous quarter:

* Higher cost of sales driven by higher sold quantities.

This decrease was limited by:

* Increase in revenues driven by higher sold quantities.

The reasons of decrease in revenue for the current period compared with previous period:

* Decrease in average selling prices by 6%

This decrease was limited by:

* Increase in sold quantities by 2%.

The reasons of decrease in net profit for the current period compared same period last year:

* Decrease in revenues due to lower average selling prices.

* Income after zakat and income tax and net comprehensive income attributes to the parent company.

* During the quarter ended 30 June 2024, the purchase price allocation (“PPA”) exercise was completed to determine the fair value of the net identifiable assets attributed to the acquisition of the joint venture (investment in 49% of the share capital of ETG Inputs Holdco limited) and the resulting adjustment have been reflected in the interim condensed consolidated financial statements of the second quarter according to the accounting standards endorsed in the Kingdom of Saudi Arabia.