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KSA’s Sabic Agri-Nutrients’ net income grew 8% y-o-y to SAR 705 in 2Q due to an increase in sales volume, according to an earnings release (pdf). Its revenues rose 2% y-o-y over the same period to SAR 2.7 bn.
Behind the numbers: The agri-nutrients producer said average sales prices dropped by 15% while sales volume increased by 25% during the quarter compared with the last quarter, according to the release.
The global fertilizer market faced supply shortages in 2Q 2024, with production disruptions in Africa and Southeast Asia, coupled with China’s unexpected export ban, tightening supply, according to the company. However, demand remained high, particularly in the US, Europe, and Asia, driven by seasonal agricultural needs.
REMEMBER- Sabic was expecting a rough quarter: The company was expecting a “challenging” second quarter performance due to reduced demand on the back of the transition away from the spring agricultural season.
For the year-to-date: The agri-nutrients producer’s net income was down 5% y-o-y in the first half of 2024 to SAR 1.5 bn, while its revenues saw a 4% drop y-o-y over the same period to SAR 5.2 bn.
What to expect in Q3: Sabic Agri-nutrients said it expects strong demand in the third quarter of the year due to season transitions in South America and the Indian subcontinent. It sees a recovery in global supply as output snags and gas restrictions are resolved. However, a resumption of exports by China by the end of the quarter could maintain prices throughout the period.
