SAFCO has shut down SAFCO 4 plant from 7 June until 21 June, according to fertecon. The news report did not shed more light on the shutdown, but it is most likely a technical issue, in our view, given the unscheduled nature of the downtime. We note that we did not account for this shutdown in our 2Q18 preview and, thus, we see a c15-20% potential downside risk to our earnings forecast (SAR323mn).
SAFCO: SAR64.00 as of 10 Jul. 2018, Rating: Neutral, TP: SAR60.50/share, MCap: USD7,112mn, SAFCO AB/2020.SE