Yanbu National Petrochemicals Company (Yansab) said on Thursday that planned rises to gas feedstock prices in Saudi Arabia would have less impact on its production costs than it previously expected.

The company expects its production costs to rise by one percent, it said in a bourse statement.

Late last year, Yansab said it expected its production costs to rise by 6.5 percent due to fuel and electricity price hikes announced in Saudi Arabia's 2016 government budget.

Yansab said it had revised its view after it received clarification from state oil company Saudi Aramco about when the prices rises would take effect.

Propane prices will rise from the end of the second quarter and ethane prices will rise during the fourth quarter, it said. - Reuters