Saudi Paper Manufacturing says energy price hike to raise costs by 5%

Saudi Paper Manufacturing Co. said higher energy prices would raise the company’s operational costs by five percent a year.

Financial impact will be reflected in 2016, but the company plans to increase efficiency to lessen the impact on its profit, the company said in a statement to the Saudi bourse, Tadawul.

Last week, the Saudi cabinet agreed to cut energy subsidies to reduce public spending and increase non-oil revenues.