Saudi Arabian Fertilizer Q3 net doubles to $323 million

Saudi Arabian Fertilizer Co., a unit of Saudi Basic Industries Corp., said third-quarter profit doubled on higher product prices, beating analysts’ estimates.

Net income surged to 1.21 billion riyals ($323 million) from 604 million riyals a year ago, the Jubail-based company known as Safco said in a statement to the Saudi bourse today. The median estimate of three analysts was for a profit of 954 million riyals, according to data compiled by Bloomberg.

Safco, 43 percent owned by Saudi Basic Industries, is gaining from strong demand for fertilizers and petrochemicals in Asian countries as oil traded about $90 a barrel in the third quarter. Saudi Arabia is the holder of the world’s largest oil reserves and demand for Saudi petrochemicals has been strong this year, especially in Asia.

Profit increased as prices of the company’s products rose in global markets, Safco said in the statement. Third-quarter operating income rose 98 percent to 1.1 billion riyals.

The shares have gained 16 percent this year compared with a 8.1 percent decline in the benchmark Tadawul All Share Index. The stock rose 1.4 percent to 186 riyals yesterday, giving the company a market value of 46.5 billion riyals.