According to Bank of America, shares of Sabic Agri-Nutrients are expected to rise more than 50% next year thanks to limited fertilizer supplies around the world. The company, formerly known as Saudi Arabia Fertilizer Company, is one of the largest fertilizer producers, with an annual production capacity of approximately 4.5 million tons. A hike in the price of natural gas, a key raw material, over the past year has sent fertilizer costs soaring globally, benefiting the Saudi chemical company. The price of natural gas has more than doubled to $4 per million British thermal units (MMBTU) in the past year due to the Russia-Ukraine conflict. By contrast, BofA analyst Sashank Lanka said Sabic Agri-Nutrients pays $1.25/MMBtu for gas, due to its relationship with Saudi Arabia’s petrochemical company Sabic, a major shareholder. “Our Buy Rating is driven by our expectations of steady earnings momentum over the medium term,” Lanka said in a note to clients on Jan. 3. “We also have high expectations. the urea cost curve will be steeper, supported by rising gas prices in the EU and Asia coupled with higher coal prices,” added Lanka.Although gas prices have fallen since their peak in August, “This could push up gas prices, putting pressure on gas prices,” said Jassim Al-Jubran, head of sell-side research at Aljazira Capital. pressure on European urea producers and could benefit SABIC Agri-Nutrients which already have raw materials at a fixed cost” to customers following the company’s third quarter results last year. Nutrients reported a 93.3% increase in net profit to 2.3 billion Saudi riyals ($610 million), year-over-year. Al-Jubran predicts shares will rise 26% to 179 Saudi riyals Ut. Bank of America also noted that China’s fertilizer export ban, likely through June 2023, to support domestic agricultural consumption with sufficient supply at low prices will further reduce global supply. While US investors can gain exposure to Sabic Agri-Nutrients through the Franklin FTSE Saudi Arabia ETF, European investors can gain exposure through the iShares MSCI Saudi Arabia Capped UCITS ETF. .