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Saudi petchem firms’ income seen to top $11bn next year

Saudi investment firm, NCB Capital has said higher prices and improved demand outlook are expected to increase the 2014 year-on-year earnings of the kingdom’s top 10 petrochemical companies to SR42.5bn ($11.3bn), Saudi Gazette has reported. The sector will also benefit from contribution from new projects and improved operational efficiency for most of the stocks under coverage, added the end-of-year update on the Saudi petrochemicals sector, NCB Capital said. “We remain Overweight on SABIC, SIIG, Tasnee, Yansab and Advanced, while maintaining all other ratings. Higher petrochemicals prices driven by improved demand outlook, continued feedstock advantage, new start-ups and operational efficiency are expected to increase 2014 earnings by 21% year-on-year,” said Iyad Ghulam, equity research analyst at NCB Capital.