Saudi Arabian Fertilizer stock adds 54 percent urea capacity

Published on 10/07/2026 at 09:46 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Saudi Arabian Fertilizer stock reflects a USD 3.465 billion project approved on September 9, 2026. First-half profit was SAR 1.6 billion, down 21.42 percent.

Saudi Arabian Fertilizer, SA0007879139, Illustration mit AI erstellt.

Saudi Arabian Fertilizer stock (ISIN SA0007879139) was trading at SAR 118.90 on Tadawul on October 7, 2026 at 10:29 a.m. AST, down 0.83 percent from SAR 119.90. The company is advancing a large ammonia and urea expansion approved in September.

Expansion targets 54 percent growth

According to Saudi Exchange, SABIC Agri-Nutrients approved the final investment decision for its seventh project on September 9, 2026. The engineering, procurement and construction contract with Samsung E&A is valued at USD 3.465 billion.

The complex will include 1.2 million metric tons of annual ammonia capacity and two urea plants totaling 2.6 million metric tons per year. The project would lift urea capacity from 4.8 million to 7.4 million metric tons, a 54 percent increase, with construction scheduled to begin in the fourth quarter of 2026 and commercial production targeted for the fourth quarter of 2030.

Profit decline raises the near term test

Arab News reported on September 10, 2026 that first-half net profit stood at SAR 1.6 billion, down 21.42 percent from the same period in 2025. The company attributed the decline to lower sales volumes caused by supply chain challenges and weaker revenue.

The contrast is important for the stock: the project expands long-term production, while the first-half comparison shows pressure on current earnings. The Saudi Exchange announcement also says the financial impact will appear after completion and the start of commercial operations, leaving the investment case tied to execution, financing and future fertilizer conditions.

Analysts see upside with caution

According to Finimize, Bank of America cut its price objective from SAR 170 to SAR 158 on September 16, 2026, while retaining a Buy view. The reduction was linked to softer volume expectations, higher logistics costs and the USD 3.47 billion plant investment, even as the bank expected urea prices to remain supported through the first half of 2027.

MarketScreener lists a consensus rating of Accumulate from 12 analysts and an average target of SAR 137.68. Against the SAR 118.90 trading price, that target is 15.8 percent higher, although the consensus range includes the effect of differing views on near-term earnings and long-dated capital spending.

Saudi Arabian Fertilizer stock trades below its yearly high

The SAR 118.90 price on October 7, 2026 stands between the 52-week low of SAR 108.30 and the 52-week high of SAR 159.30. Market capitalization was SAR 56.6 billion and volume was 36,118 shares at the same October 7, 2026 snapshot.