SABIC Agri-Nutrients to continue studying available investments inside, outside Kingdom: Chairman

Chairman of SABIC Agri-Nutrients Co., Abdulrahman Shamsaddin

SABIC Agri-Nutrients Co. reported one of the highest quarterly profits in the first quarter of 2022, Chairman Abdulrahman Shamsaddin told Argaam in an interview, ascribing this rise to higher sales volumes and average selling prices, which were positively reflected on the company’s performance.  

The average prices of urea and ammonia soared 186%, compared to the first quarter of 2021. Sales volumes rose by 23%, with revenue skyrocketing 209% year-on-year (YoY). Moreover, the average selling prices grew 10% YoY in Q1 2022, but the sales volume increased by 5%, pushing revenue to grow by 15%. 

 
Speaking of the Russia-Ukraine war impact on demand and pricing levels, Shamsaddin explained that the rise in agri-nutrient prices globally was a function of low supply, due to that war. This in turn impacted the company’s results. “SABIC Agri-Nutrients does not currently have operations in Europe and the conflict zones. Therefore, its operations were not affected,” the chairman added. 
  

As for updates on the acquisition of ETG Inputs Holdco Limited, Shamsaddin expected the relevant financial impact to appear during the second half of this year, if the deal is closed in accordance with the regulatory requirements.
 

He added that this deal comes as part the company's strategic directions in integrating its operations to include the distribution of agricultural nutrients in global markets and access to farmers and the end customers, thus expanding its activities and benefiting from growth opportunities that are expected to reflect positively on the company by providing integrated solutions.
 

Shamsaddin also pointed out that the company continues, in accordance with the axes of its strategy, to study the investment opportunities available inside and outside the Kingdom, by participating in the establishment of projects or companies concerned with the agricultural nutrients industry.
 

The company has set a clear strategy to confirm growth in the field of agricultural fertilizers and nutrients, while maintaining safety, quality and sustainability. This is along with full commitment to all relevant industry standards and laws to achieve leadership, affirm partnership between all parties associated with the company locally and globally, develop shareholder rights, and boost working force, thus allowing it to maximize its assets and presence in the global markets, according to the top official.  
 

The company reported a net profit after Zakat and tax of SAR 2.513 billion for Q1 2022, an over five-fold rise from SAR 423 million in the year-earlier period, Argaam earlier reported.