Saudi Arabia's Yanbu National Petrochemical, also known as Yansab, could face two challenging quarters on lower oil prices amid concerns about a slowing US economy and the worsening European debt crisis, Al Rajhi Capital said yesterday.
The unit of Saudi Basic Industries, the world's biggest petrochemicals maker, is expected to suffer declines in product prices of 7 per cent in the third quarter and 3 per cent in the fourth quarter as Brent crude for September trades at US$107.83 a barrel, down from $116.81 earlier this month.
The average prices of Yansab's two main products, ethylene and polyethylene, declined by 16 per cent and 7 per cent respectively last month, compared with the average price in the second quarter. The price of ethylene is currently at $1,284 per tonne while polyethylene is at $1,358 per tonne.
Earlier this year, analysts expected Saudi petrochemical stocks to outperform global rivals with margins driven by cheap feedstock costs and improving demand, along with supply concerns because of unplanned shutdowns in Asia.
But that outlook has drastically changed over the course of a month.
This month has sent financial markets on a roller coaster, with fears rising that world economies could return to recession, a debt deal in the US insufficient to prevent a downgrading of the American government's top-tier credit rating and an escalation of debt problems in the euro zone.
The chances of a new global recession have risen, although the more likely outcome is a period of low economic growth.
"We may revise our price estimates further in the event of major negative macroeconomic developments in the US or Europe, affecting oil prices severely," the note from Al Rajhi Capital analysts said.
Yansab is forecast to report a 10 per cent decline in revenues to 2.4 billion riyals and a 15 per cent decline in profits to 819 million riyals in the third quarter, compared with the previous quarter.
Yansab has fallen by almost 10 per cent since the start of this month. Its shares closed at 46.4 riyals on the Saudi Tadawul yesterday.
halsayegh@thenational.ae
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
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- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
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More on Quran memorisation:
Three tips from La Perle's performers
1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.
2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.
3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.
Difference between fractional ownership and timeshare
Although similar in its appearance, the concept of a fractional title deed is unlike that of a timeshare, which usually involves multiple investors buying “time” in a property whereby the owner has the right to occupation for a specified period of time in any year, as opposed to the actual real estate, said John Peacock, Head of Indirect Tax and Conveyancing, BSA Ahmad Bin Hezeem & Associates, a law firm.
Killing of Qassem Suleimani
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
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