Saudi Arabian Fertiliser Company (Safco) posted record net profits of SR1.1 billion ($293 million) in 2005, up 67 per cent from the previous year, the company said.
The results, the second record in two years, were boosted by higher international prices, a 2.0 per cent rise in output and 10 per cent rise in sales volume in 2005, Safco said in a statement.
A subsidiary of petrochemicals giant Sabic, Safco announced the start of a new production line in the second quarter of 2006, which would raise urea output by 73 per cent to 2.6 million tonnes and nearly double ammonia output to 2.3 million tonnes.
Production was initially scheduled to start in the first quarter.
Safco's board will propose the distribution of SR840 million from its 2005 net profit or a dividend of SR21, up 50 per cent from 2004.
Safco's fourth plant is expected to go on-stream during the second quarter of this year, said a top official.
"This will have an annual capacity of 1.1 million tonnes of ammonia and 1.1 million tonnes of urea," said Safco Chairman and Managing Director Mohamed Al-Mady.
Al-Mady, who is also Sabic Vice-Chairman and CEO, was speaking after a board meeting of Safco.
The board of directors decided in its meeting of to recommend to the Shareholders' General Assembly to distribute dividends amounting to SR840 million ($224 million) to shareholders, at SR21 ($5.6) per share.
The meeting is scheduled to take place in April.
Furthermore, another recommendation will be made to the General Assembly to start paying half-yearly dividends from 2006.
Al Mady said the board also reviewed corporate performance and various other business activities.
It also reviewed work in progress, particularly the construction of Safco's fourth plant.
"I congratulate the Board, executive management and all employees for contributing towards the unprecedented profits and the increased levels of Saudisation, now standing at 93 per cent," said Al-Mady.
"I value your sustained contribution in anticipation of increased efforts towards further accomplishments," said the chairman.
