SABIC Agri-Nutrients (2020) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended 30 September 2024 was SAR 8.04 billion, nearly flat year-over-year, while net income declined to SAR 2.47 billion from SAR 2.84 billion, reflecting margin pressures and higher costs.

• The company transferred its statutory reserve of SAR 1.4 billion to retained earnings following regulatory changes, and received approval to build a new plant in Jubail, expanding blue ammonia and urea capacity.

• Interim cash dividends of SAR 3 per share (SAR 1.43 billion total) were distributed for H1 2024.

Financial highlights

• Q3 2024 revenue was SAR 2.85 billion, up 7% year-over-year; Q3 net income was SAR 849.6 million, down 23% year-over-year.

• Gross profit for the nine months was SAR 2.96 billion, down from SAR 3.29 billion year-over-year.

• Basic and diluted EPS for the nine months was SAR 4.98, compared to SAR 5.63 in the prior year.

• Net cash from operating activities for the nine months was SAR 2.84 billion, down from SAR 3.66 billion year-over-year.

• Total assets stood at SAR 24.8 billion as of 30 September 2024.

Outlook and guidance

• The new Jubail plant will add 1.2 million tonnes of blue ammonia and 1.1 million tonnes of urea and specialized agri-nutrients to capacity.

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