Shares of Sabic Agri-Nutrients are expected to rise more than 50% next year due to limited fertilizer supplies worldwide, according to Bank of America. The company, formerly known as the Saudi Arabian Fertilizer Company, is one of the largest producers of fertilizers, with an annual production capacity of around 4.5 million tons. The price increase in the past year for natural gas, a critical raw material, has sent the cost of fertilizers soaring globally, benefiting the bottom of Saudi chemical companies. Natural gas prices have doubled by more than $4 per million British thermal units (MMBTU) over the past year due to the Russia-Ukraine conflict. In contrast, BofA analyst Sashank Lanka said Sabic Agri-Nutrients paid $1.25/MMBtu for the gas, due to its relationship with Saudi petrochemical company Sabic, which is the majority shareholder. “Our Buy rating is driven by our expectations of stable earnings momentum over the medium term,” Lanka said in a note to clients on January 3. along with high coal prices,” added Lanka. Although gas prices have decreased since the August peak, analysts expect demand to increase in Europe during the winter. “This could push gas prices up, keep pressure on European urea producers and could benefit from SABIC Agri-Nutrients has fixed cost raw materials,” said Jassim Al-Jubran, head of sales research at Aljazira Capital, in a note to clients after the company’s third quarter results last year. Sabic Agri-Nutrients reported an increase in net profit of 93.3 % to 2.3 billion Saudi riyals ($610 million), compared to the previous year. Al-Jubran expects the stock to rise 26% to 179 Saudi riyals. Bank of America also notes that China’s fertilizer export ban, potentially until June 2023, to support domestic agricultural consumption with sufficient supply at low prices will reduce global supply. While US investors can gain exposure to Sabic Agri-Nutrients through the Franklin FTSE Saudi Arabia ETF, European investors bis a access to these shares through the iShares MSCI Saudi Arabia Capped UCITS ETF.