Major petrochemical companies in Saudi Arabia announced an improvement in feedstock supplies, days after an attack on Aramco facilities, boosting petrochemical shares on Tadawul.
Saturday’s attacks on Aramco facilities in Abqaiq and Khurais cut the company's crude oil supply by around 5.7 million barrels per day or about 50 percent of its output.
On Tuesday, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman announced that the kingdom would restore its lost oil production by the month-end, having recovered supplies to customers to the pre-weekend attack levels.
Petrochemical companies that had earlier in the week announced curtailments in their feedstock supplies told the Saudi bourse on Wednesday that the supplies have improved and are expected to reach normal levels by the end of September.Saudi Basic Industries Corporation
(SABIC) said the curtailment of its feedstock supplies went down from 49 percent to 30 percent while Kayan
Petrochemical said that its curtailment went down from 50 percent to 37 percent.Yanbu National Petrochemical
announced an improvement in curtailment from 30 percent to 17 percent, while Advanced Petrochemical
’s curtailment dropped to approximately 20 percent from 40 percent.
The companies said that they will continue to evaluate the final effects of the attacks to determine the financial impact.
SABIC’s shares were trading 0.22 percent higher by 13:01 GST on Wednesday, Advanced Petrochemical
’s shares surged 3.07 percent while Yanbu’s shares rose 0.79 percent and Kayan
’s shares edged 0.2 percent higher.
(Writing by Gerard Aoun, editing by Seban Scaria)
Our Standards: The Thomson Reuters Trust Principles
Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.
© ZAWYA 2019