Mubasher: Yanbu National Petrochemical Company (Yansab) posted a "strong" set of results in the second quarter of 2016, with net income up 203% year-on-year to SAR 689.3 million, according to a report by NCB Capital.

Yansab’s Q2-16 results are higher than the NCBC and consensus estimate of SAR 455 million and SAR 446 million, respectively.

NCB Capital attributed variance in earnings to higher than expected operating rates and gross margin.

Yansab’s net income grew 203% year-on-year and 72% quarter-on-quarter to SAR 689 million, the report said.

Saud-listed firm said the year-on-year increase resulted from higher production, higher sales volumes and lower feedstock cost, while the quarter-on-quarter rise in earnings is due to higher sales volumes and an improvement in product prices.

NCB Capital remained “Overweight” on Yansab’s stock with a price target of SAR 47.5.

Based on Yansab results, NCB Capital revised its Q2-16 net income estimates for Saudi Basic Industries Corp. (SABIC) by 3.3% to SAR 3.8 billion.