Riyad Capital maintained its neutral rating on National Industrialization Co. (SASE:2060), d/b/a Tasnee, as it took note of the company's second-quarter results and other operational updates.
The petrochemical company logged a loss of 548 million Saudi riyals in the second quarter, against Riyad Capital's estimate of a 353 million-riyal loss, according to a Monday note. The company's 380 million-riyal revenue, meanwhile, surpassed the research firm's 327 million-riyal forecast.
"Other notable developments: SEPC restarting, with scheduled maintenance completed 7 June and pilot production at the Ethylene Cracker Expansion commencing 1 July (per Tadawul), placing expansion economics into 2H26. The Rowad sale cleared a key condition precedent with GAC approval on 14 July; completion would bring roughly SAR 700 mln in liquidity, likely used for debt reduction," analysts said. "With the SEPC restart and downstream business exit advancing, but the stock down roughly -12% Y/Y and deleveraging pending the Rowad closing, we maintain our Neutral rating and our [SAR9] target price."