Flash floods, landslides kill 8 in northern Vietnam, 3 missing    Saudi Arabia approves new Medical Referral Center with 15 key responsibilities    Saudi Arabia produces over 122,000 tons of high-quality local grapes during peak summer season    Saudi Arabia detains over 22,000 residency, labor, and border violators in one week    Hamas says it will not disarm without fully sovereign Palestinian state    Canada rejects claims of ongoing arms exports to Israel    Israeli strikes kill at least 18 in Gaza as aid seekers face deadly fire    HR ministry proposes strict rules for advertising domestic labor services    Saudi Gazette publishes full text of new foreign property ownership law The law grants non-Saudis broader real estate rights under defined conditions while imposing restrictions in Makkah and Madinah    Saudi anti-graft authority investigates 425 employees, detains 142 in July corruption cases    Saudi Arabia's real GDP grows 3.9% in Q2 2025 on broad-based economic expansion    Sotheby's returns Buddha jewels to India after uproar    Riyadh Film Music Festival returns with live orchestral performances of iconic movie scores    Saudi, Russian energy ministers discuss oil market and joint committee plans    Nissan Formula E Team celebrates a landmark season 11 with proud Saudi sponsor Electromin    Fahad bin Nafel steps down as Al Hilal president after historic six-year run    João Félix unveiled by Al Nassr as €50m move marks bold new chapter in Riyadh    Saudi Arabia approves first Alzheimer's treatment with lecanemab for early-stage patients    Chris Tucker, Pete Davidson and Aziz Ansari among stars set for Riyadh Comedy Festival    Al Nassr beat Benfica to €50m João Félix signing after Ronaldo, Jesus intervene    Sholay: Bollywood epic roars back to big screen after 50 years with new ending    Ministry launches online booking for slaughterhouses on eve of Eid Al-Adha    Shah Rukh Khan makes Met Gala debut in Sabyasachi    Pakistani star's Bollywood return excites fans and riles far right    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Safco slumps as Q2 disappoints, other petchem producers follow
Published in The Saudi Gazette on 11 - 07 - 2011

Saudi stock benchmark Tadawul All Share Index (TASI) took a hammering Sunday as petrochem shares dropped amid disappointing earnings in the second quarter.
The index fell 0.71 percent to 6,581.38 points.
Saudi Arabian Fertilizers Co. (Safco) slumped to a three-week low after the firm's second-quarter profit missed estimates, sparking selling in other petrochemical stocks.
Investors had bet high oil prices would boost petrochemical producers' earnings, so Safco's results sparked sector-wide selling, dragging Saudi Arabia's petrochemicals index down 1.6 percent, its biggest decline in five weeks.
Safco's shares dropped 1.9 percent to their lowest finish since June 20 after the company's net profit fell 13 percent in the second quarter to SR790 million ($210.7 million), compared with SR907.2 million in the prior-year period when its results were boosted by sale of land.
The company said sales of ammonia declined in the second-quarter and average urea prices were also lower on a sequential basis.
Operating profits at Safco rose 36 percent to SR757 million versus SR558 million year-ago.
Safco said it would pay a dividend of SR6 a share for the first half of the year. Saudi Arabian Basic Industries Corp. holds a 42.9 percent stake in Safco.
Safco shares have gained 17.5 percent year-to-date.
"Ammonia and urea prices have increased over 10 percent quarter-on-quarter, so analysts were expecting better earnings from Safco," said Ankit Gupta, senior research analyst at Securities & Investment Co (SICO) in Bahrain.
Shares in Saudi Basic Industries Corp. (SABIC), which holds a 43 percent stake in Safco, slid 1.4 percent.
Elsewhere, Cairo's benchmark index fell 1.7 percent to a seven-week low as tens of thousands of Egyptians packed city centers over the weekend to demand faster reforms and voice frustration at what they regard as foot-dragging by military rulers and government officials. The measure fell to 5,271 points.
Qatar benchmark fell 0.2 percent to 8,488 points.
Kuwait measure eased 0.03 percent to 6,211 points.
Bahrain measure slipped 0.01 percent to 1,319 points.
However, Abu Dhabi and Dubai both registered gains.
Dubai index climbed 0.6 percent to 1,567 points. Abu Dhabi index rose 0.3 percent to 2,722 points.
Banks lifted Abu Dhabi's benchmark ahead of quarterly results, with lenders' earnings seen as a barometer for the health of the UAE economy.
"If any (UAE) sector's shares will move on results, it will be banks - they are the main barometer of the economy and any pick up in loans will be taken very positively by the market," said Rami Sidani, Schroders Middle East head of investment.
"The UAE is more of a long-term story and a function of the risk appetite regionally and globally. Investors are waiting to see real estate prices pick up, as well as general sentiment.”


Clic here to read the story from its source.