The Saudi Arabian Fertilizer Company (SAFCO) reported first quarter 2005 net profits of SR 236,3 million compared to SR 116,8 profits in the same period in 2004.

Mohammed Al-Mady, SABIC Vice Chairman & CEO said that the 1Q2005 profits were 102% higher than those in the same period in 2004 due to a 30% rise in overall sales and Urea prices increase of 29%.

Mohammed Al-Mady said the 1Q2005 6% decrease in profits compared to the profits in 4Q2004 is attributed to the decrease in some products sales prices as well as a decrease in company’s shared profits of sister companies. Regarding the existing status quo and the future forecasts, Mr. Al-Mady outlined that products prices are now seeing some stability. SAFCO expansion project implementation works are on track. Commercial production is expected to go live on stream towards the beginning of 2006, God willing. The total annual capacity will go over 5 million MT.

Mohammad S Al-Motawa

General Manager, Corporate Communications