Urea logistics exceed USD 200 per tonne: what it means for Saudi Arabian Fertilizer stock

Published on 10/08/2026 at 13:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

First-half profit fell 21.00 percent to USD 428 million. For Saudi Arabian Fertilizer stock this means urea averaged USD 420 per tonne in the third quarter.

Saudi Arabian Fertilizer, SA0007879139, Illustration mit AI erstellt.

Saudi Arabian Fertilizer stock faced logistics costs above USD 200 per tonne on October 8, 2026, as Strait of Hormuz disruption constrained fertilizer exports, AGBI reported. The company is also known as SABIC Agri-Nutrients, and its first-half net profit fell 21.00 percent to USD 428 million.

Logistics pressure tests margins

AGBI said transport costs on a Red Sea export route had risen above USD 200 per tonne from USD 50 before the conflict. Urea prices averaged USD 420 per tonne in the third quarter of 2026, leaving a narrow spread after production costs of USD 150 to USD 200 per tonne.

The figures matter because Saudi Arabian Fertilizer converts natural gas into urea and other agricultural nutrients. A higher selling price can protect earnings, but the benefit is reduced when shipping absorbs the difference between product revenue and production cost.

Profit decline meets expansion plan

The first-half profit decline gives the capacity expansion a demanding starting point. According to the Saudi Exchange disclosure dated September 10, 2026, the board approved the seventh project on September 9, 2026, with an EPC contract worth USD 3.465 billion.

The project includes 1.2 million tonnes of annual ammonia capacity and 2.6 million tonnes of annual urea capacity. Planned urea capacity would rise from 4.8 million to 7.4 million tonnes per year, an increase of 54.00 percent, while commercial production is scheduled for the fourth quarter of 2030.

Tadawul price stays below prior close

On Tadawul, the stock stood at SAR 116.90 on October 8, 2026 at 1:53 p.m. AST, down 1.68 percent from the SAR 118.90 prior close. The 52-week range was SAR 108.30 to SAR 159.30, putting the latest price SAR 8.60 above the low and SAR 42.40 below the high.