The Saudi Arabian Fertilizer Company (SAFCO), an affiliate of Saudi Basic Industries Corporation (SABIC), reported first half 2006 net profits of SR 565.4 million compared to SR 474.2 million in the same period of 2005. Q2, 2006 net profits were SR 290 million compared to SR 237.8 million in the same period of the previous year, according to a report on SABIC's web-site. Mohamed Al-Mady, SABIC Vice Chairman & CEO and SAFCO's Chairman and Managing Director said, “SAFCO's first half 2006 profits increased by 19% compared to the same period last year. This is due to the increase in prices of major products despite a 5% decrease in the volume of sales.” He also said that the increase in Q2, 2006 profits compared to Q1, 2006 profits is due to an improvement in urea prices and a rise in sales volume by 2%. The SAFCO IV expansion project has been commissioned and is scheduled to begin commercial production by the end of Q3, 2006. This will positively improve the company's profitability beginning Q 4, 2006.
