DUBAI, Dec 30 (Reuters) - Saudi Arabia's Yanbu National Petrochemical Co 2290.SE (Yansab) expects fuel and electricity price hikes announced in the 2016 government budget to increase its production costs by 6.5 percent next year, it said in a bourse statement on Wednesday.

The impact will be reflected on the company's profitability starting from the first quarter of 2016, it said, adding that it was working on reducing the impact by increasing plants' efficiency and cutting other costs. ID:nL8N14H1GN

(Reporting by Archana Narayanan; Editing by Andrew Torchia) ((archana.narayanan@thomsonreuters.com; +971 445 36240; Reuters Messaging: archana.narayanan.thomsonreuters.com@reuters.net))

Keywords: YANSAB COSTS/