SABIC Agri-Nutrients (2020) Q2 2024 earnings summary

Executive summary

• Interim results for the three- and six-month periods ended 30 June 2024 were reviewed and found compliant with IAS 34 by independent auditors.

• The Group operates primarily in agri-nutrients and petrochemicals, with all assets located in Saudi Arabia.

• Revenue reached SAR 2,676 million ($714 million) in Q2 2024, up 6% quarter-over-quarter and 2% year-over-year.

• Net income was SAR 705 million ($188 million) in Q2 2024, down 16% sequentially but up 8% year-over-year.

• A major statutory reserve transfer to retained earnings was executed following regulatory changes.

Financial highlights

• Six-month revenue was SAR 5,193.6 million, down 3.6% year-over-year; Q2 revenue was SAR 2,676.1 million, up 1.8% from Q2 2023.

• Net income for the six months was SAR 1,615.4 million, a 7.2% decrease year-over-year; Q2 net income was SAR 743.4 million, up 7.8% from Q2 2023.

• EBITDA for Q2 2024 was SAR 920 million ($245 million), down 4% sequentially, up 2% year-over-year.

• Gross profit for six months was SAR 1,890 million, down from SAR 2,069 million year-over-year.

• Interim cash dividend of SAR 3 per share (SAR 1,428 million total) approved for H1 2024.

Outlook and guidance

• Approval received to build a sixth plant in Jubail, targeting 1.2 MMTA Blue Ammonia and 1.1 MMTA Urea and specialized products.

• Q3 2024 expected to see strong demand due to seasonal transitions in South America and India.

• Global supply anticipated to recover as producers resolve output and gas issues; China may resume exports late Q3, potentially sustaining prices.

• All unfulfilled performance obligations as of 30 June 2024 are expected to be satisfied in the following period.