Tesing looming time for Yansab in Q3 and Q4

17-Aug-11

Saudi Arabia's Yanbu National Petrochemical (Yansab) could face challenges in Q3 & Q4 due to fall in oil prices triggered by a slowing US economy and the worsening European debt crisis. The unit of Saudi Basic Industries is expected to suffer declines in product prices of 7% in Q3 and 3% in the Q4 as Brent crude continues on a downtrend. Chances of a new global recession have risen, although the more likely outcome is a period of low economic growth. Compared to Q2 average price of Yansab's main products- ethylene and polyethylene, average prices declined by 16% and 7% respectively in July. Yansab is forecast to report a 10% decline in revenues to 2.4 bln riyals and a 15% decline in profits to 819 mln riyals in the Q-3, compared with the previous quarter.