Saudi Basic Industries Co. (Sabic) is expected to record lower net profits in 2014 and 2015, according to Al Jazira Capital.
The company’s net profits, however, are projected to improve in 2016. The firm added that the price of oil will continue to decline, reaching $65 per barrel in 2015 with the probability of increasing slightly to $70 in 2016.
Al Jazira Capital said that Sabic’s lower profit margins are also driven by the decline of petrochemical prices.
The firm issued its recommendations for petrochemical companies under its coverage as shown below.
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Al Jazira Capital Projections |
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Target price (SAR) |
Rating |
Company |
|
110.4 |
Overweight |
SABIC |
|
179.0 |
Overweight |
SAFCO |
|
57.3 |
Overweight |
YANSAB |
|
10.9 |
Neutral |
KAYAN |
|
37.7 |
Overweight |
Sipchem |
|
59.7 |
Overweight |
Advanced Petrochemical |
|
31.9 |
Overweight |
Tasnee |
|
23.1 |
Overweight |
Sahara Petrochemical |
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