SABIC Agri-Nutrients (2020) Q4 2023 earnings summary

Executive summary

• FY2023 revenue fell 42% YoY to SAR 11,033 million, while net income declined 64% to SAR 3,659 million, primarily reflecting lower average selling prices.

• Q4 revenue and EBITDA rose 11% and 2% QoQ, respectively; net income fell 7% QoQ and 55% YoY to SAR 978 million.

Financial highlights

• FY2023 EBITDA was SAR 4,579 million, down 59% YoY; operating profit was SAR 3,664 million, down 65%.

• Q4 revenue was SAR 2,972 million, up 11% QoQ and down 29% YoY; EBITDA was SAR 1,266 million, up 2% QoQ and down 47% YoY.

• Q4 operating profit was SAR 1,020 million, up 1% QoQ and down 53% YoY; net income was SAR 978 million, down 7% QoQ and 55% YoY.

• FY2023 average selling prices declined 43% YoY; Q4 average sales prices rose 10% QoQ, while sales volume increased 1%.

Outlook and guidance

• Q1 2024 fertilizer demand expected to benefit from importer restocking, logistics challenges and greater focus on timely delivery; outlook on El Niño demand impact became more optimistic.

• Restrictive government export policies and gas curtailments in nitrogen-producing regions are expected to constrain supply into Q1 and Q2 2024.

• Producers may use supply constraints to secure orders; buyers are showing willingness to pay more for marginal tons rather than delay procurement.