Safco approved USD 3.46 billion expansion: what it means for Saudi Arabian Fertilizer stock

Published on 10/12/2026 at 09:09 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Urea capacity is set to rise 54 percent from 4.8 million to 7.4 million tonnes. For Saudi Arabian Fertilizer stock, this means output in 2030.

Key points in brief

Saudi Arabian Fertilizer, now SABIC Agri-Nutrients, approved a USD 3.46 billion expansion project.
Annual urea capacity is planned to rise 54 percent from 4.8 million to 7.4 million tonnes.
First-half net profit fell 21 percent to USD 428 million, while the latest Tadawul quote was SAR 117.70 on October 11, 2026.
Commercial production from the expansion is planned for 2030.

Saudi Arabian Fertilizer, SA0007879139, Illustration mit AI erstellt.

Safco approved a USD 3.46 billion expansion, giving Saudi Arabian Fertilizer stock a capacity story to weigh against weaker earnings. Saudi Arabian Fertilizer is now SABIC Agri-Nutrients Company, formerly Saudi Arabian Fertilizer Company, and the project was reported by Indian Chemical News on October 11, 2026.

What does the expansion mean?

The board-approved project is designed to lift annual urea capacity from 4.8 million tonnes to 7.4 million tonnes, a 54 percent increase. The complex includes a 1.2 million tonne ammonia plant, two urea plants with combined capacity of 2.6 million tonnes, and a carbon capture unit, according to Indian Chemical News.

Samsung E&A received the engineering, procurement and construction contract, while the project uses technology from Kellogg Brown & Root, Stamicarbon, thyssenkrupp Uhde Fertilizer Technology and Shell Global Solutions International. Commercial production is anticipated in the fourth quarter of 2030, making the expansion a long-term capacity investment rather than an immediate earnings driver.

Profit pressure remains visible

The near-term picture is more difficult. SABIC Agri-Nutrients reported first-half net profit of USD 428 million, down 21 percent, according to AGBI on October 8, 2026. The report linked weaker first-half sales volumes to transport disruption around the Strait of Hormuz and said logistics costs had risen above USD 200 per tonne from USD 50 before the conflict.

That contrast matters for the stock: the project adds 2.6 million tonnes of annual urea capacity, but the latest half-year result shows how quickly logistics and selling conditions can affect profitability. Urea prices averaged USD 420 per tonne in the third quarter, while production costs were reported at USD 150-200 per tonne, before transport expenses.

Stock stays below its yearly high

The latest quote for the Tadawul listing was SAR 117.70 on October 11, 2026 at 3:19 p.m. AST. The same market snapshot put the 52-week range at SAR 108.30 to SAR 159.30, leaving the stock 26.11 percent below its 52-week high.

SABIC Agri-Nutrients had a market capitalization of SAR 56.0 billion in that snapshot. The next major investor marker is the planned 2030 production start, while the first-half profit decline keeps execution and fertilizer-market conditions central to the valuation.