SABIC Agri-Nutrients’ Chairman says urea, ammonia prices surge 90% in Q4 2021
Yousef Al-Benyan Chairman of SABIC Agri-Nutrients Co.
Yousef Al-Benyan, Chairman of SABIC Agri-Nutrients Co., said average urea and ammonia prices surged over 90% quarter-on-quarter (QoQ) in Q4 2021.
Product prices are subject to many variables, such as the operating rates of plants, the supply chains impact, available inventories and the tenders expected in the coming term, Al-Benyan said in a statement to Argaam.
The company will shut down some plants for scheduled maintenance this year. The related details will be disclosed to all shareholders in the board’s annual report.
SABIC Agri-Nutrients’ Q4 2021 net profit was the highest quarterly, compared to previous years. This growth was fueled by a rise in the average prices of the company’s main products, market recovery from the COVID-19 pandemic, in addition to the implementation of several reliability and sustainability programs. The improved performance also played a key role in enhancing the company’s plant reliability, Al-Benyan explained.
The agri-nutrients producer’s financial results were also lifted by the full acquisition of SABIC Agri-Nutrient Investments Co. (SANIC), which buoyed the former’s 2021 results since it was recognized in its consolidated financials.
Elsewhere, Al-Benyan said that the acquisition of a 49% stake in ETG Inputs Holdco Limited (EIHL) is part of the company’s strategy to consolidate its operations to cover the distribution and blending of agri-nutrients in global markets and get close access to farmers and end customers.
Accordingly, the company will expand its footprint taking advantage of growth opportunities, which are expected to bolster the company through providing integrated solutions and raising future revenue.
The company will announce further details upon the deal closure, Al-Benyan affirmed.
SABIC Agri-Nutrients reported net profit after Zakat and tax of SAR 5.228 billion for 2021, nearly a four-fold jump, from SAR 1.294 billion in a year-earlier period. The fourth-quarter net profit after Zakat and tax reached SAR 2.763 billion, Argaam reported