The Saudi Arabian Fertilizer Company (Safco) reported first quarter 2005 net profits of SR236.3 million ($63 million) compared to SR116.8 profits in the same period in 2004.

Mohammed Al-Mady, Sabic Vice Chairman and Chief Executive Officer, said that the first quarter 2005 profits were 102 per cent higher than those in the same period in 2004 due to a 30 per cent rise in overall sales and an increase in urea prices of 29 per cent.
Al-Mady added that the six per cent decrease in profits in the first quarter 2005 compared to fourth quarter 2004 is attributed to the decline in some products sales prices as well as a decrease in the company's shared profits of sister companies.
Considering the existing status quo and future forecasts, Mr Al-Mady outlined that product prices are now seeing some stability.
Furthermore, Safco expansion project implementation works are on track. Commercial production is expected to go live onstream towards the beginning of 2006. The total annual capacity will go over five million tones.
Meanwhile, Safco is constructing what is claimed to be the world's biggest ammonia and urea plant complexes in Jubail with an annual production capacity of 1.1 million tonnes.
Musa'ad Al-Ohaly, Vice President (Fertilizers) of Sabic, said the new state-of-the-art plant will come onstream by the first quarter of next year.
With this, it will increase Sabic's fertiliser production capacity from 2.7 million tonnes to 3.8 million tonnes.
Sabic has awarded a lump sum turnkey contract to the German engineering company, UHDE GmbH. UHDE will be responsible for the engineering, procurement and construction of the ammonia and urea plant complexes - Safco 4.
Al-Ohaly said, "We have been able to maintain high safety and environmental standards with the help of our highly skilled work force, around 90 per cent of whom are Saudis."