Sabic Fertilizers Profits Beat Estimates
Saudi Basic Industries Corporation (SABIC) for Fertilizers experienced a decline in profits of more than 62% in the third quarter of 2026, primarily due to a decrease in sales volume and rising shipping and distribution costs caused by supply chain disruptions. Despite this, the company's earnings exceeded analysts' expectations, reaching 484 million riyals compared to an anticipated 389 million riyals. The results reflect the ongoing impact of transportation restrictions, especially through the Strait of Hormuz, as the company seeks to diversify export routes via Red Sea ports and expand land transportation to reduce costs and mitigate negative effects on operations. The company expects urea prices to stabilize in the last quarter of the year amid increased European demand, although the potential return of global shipping activity could influence prices.
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