After several Saudi petrochemical producers announced feedstock curtailments this week, many have announced an improvement in the gas supplies from Saudi Aramco. Curtailment of feedstock supplies to the company plants now are as follows: i) SABIC at 30%; ii) Tasnee at 25%; iii) Yansab at 17%; iv) Advanced at 20%; and v) Kayan at 37%, while SAFCO announced it is now receiving full feedstock supply. The companies said they expect feedstock supply to reach normal levels by the end of September as stated by the Ministry of Energy. On the other hand, Petro Rabigh announced an increase in the curtailment of ethane gas, from 8% to 20%. According to an announcement, all companies are still evaluating the final effects of this shortage to better determine the financial impact, and any developments will be disclosed according to the relevant rules and regulations. With feedstock supplies looking like they will be back to normal by end September, it appears any impact will likely be limited to this quarter. 
 
SABIC: SAR89.80 as of 17 Sep. 2019, Rating: Sell, TP: SAR90.00/share, MCap: USD71,825mn, SABIC AB/2010.SE
 
SAFCO: SAR76.20 as of 17 Sep. 2019, Rating: Neutral, TP: SAR85.00/share, MCap: USD8,465mn, SAFCO AB/2020.SE
 
YANSAB: SAR50.50 as of 17 Sep. 2019, Rating: Neutral, TP: SAR58.00/share, MCap: USD7,573mn, YANSAB AB/2290.SE
 
Advanced Petrochemicals: SAR50.80 as of 17 Sep. 2019, Rating: Buy, TP: SAR62.00/share, MCap: USD2,665mn, APPC AB/2330.SE
 
National Industrialization Company: SAR12.42 as of 17 Sep. 2019, Rating: Buy, TP: SAR16.50/share, MCap: USD2,326mn, NIC AB/2060.SE