(Updates with company comment in fourth fifth paragraph.)
Oct. 11 (Bloomberg) -- Yanbu National Petrochemicals Co., a unit of Saudi Basic Industries Corp., said third-quarter profit more than doubled on higher volumes and petrochemical prices, beating analysts’ estimates.
Net income rose to 827.94 million riyals ($220.6 million) from 356.2 million riyals a year earlier, the Yanbu-based company known as Yansab said in a statement to the Saudi bourse today. The median estimate of five analysts was for 871 million riyals, according to data compiled by Bloomberg.
Profit rose because of “an increase in production and sales quantities, combined with an improvement in sales prices of most of the products,” Yansab said in the statement. Nine- month earnings per share were 4.461 riyals, compared with 1.988 riyals a year earlier, the company said.
Saudi Arabian petrochemical makers are benefiting from strong demand for fertilizers and petrochemicals from Asian countries as oil traded about $90 a barrel in the third quarter. Saudi Arabian Fertilizer Co., also a unit of Saudi Basic Industries, said on Oct. 9 that third-quarter profit doubled on higher product prices.
Saudi petrochemical producers are likely to expand output by 32 percent from a combined 53.2 million metric tons a year in 2009 to 70.2 million tons six years later, the National Commercial Bank said in an e-mailed forecast last month. The kingdom would account for 9.2 percent of global supply in 2015, it said.
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