In an interview with Argaam, Tasnee CEO Mutlaq Al-Morished has attributed the 2017 financial results to the 30% increase in Tio2 prices. He expects that Tio2 prices will not significantly increase going forward, since it has already rallied during 2017. Al-Morished noted that the increase in polyethylene (PE) and polypropylene (PP) prices were partially offset by the hike in propane feedstock costs. He also highlighted that the company’s acrylic acid division was loss-making during 2017. The company conducted a maintenance shutdown at the PDH plant during January. He stated that, usually, shutdowns take place at: i) PE and PP plant every two years; ii) PDH plant every 18 months; and iii) ethylene plants every five to seven years. With regard to the Cristal-Tronox deal, Al Morished mentioned that all parties are determined to complete the acquisition, and that he is expecting a resolution with US Federal Trade Commission (FTC) by end of 2Q18 or early 3Q18. The company may look into selling one of the assets (as an option on the table) for the deal to pass through FTC. The positive impact from tax credits came from operations located outside Saudi Arabia, according to Fawaz Al Fawaz (Tasnee’s Executive Finance VP).

National Industrialization Company: SAR17.80 as of 27 Feb. 2018, Rating: Neutral, TP: SAR18.00/share, MCap: USD3,175mn, NIC AB/2060.SE