We add four more companies to our GCC Petrochemicals and Oil & Gas Sector coverage, bringing the total to 13. Covered in this report are: SABIC Agrinutrients (SAFCO), Saudi Arabian Mining Co. (Ma’aden), ADNOC Drilling (ADNOCDRI), and Abu Dhabi National Energy Company PJSC (TAQA). Our valuations are based on a mix of DCF, EV/EBITDA, and P/E multiple. Since last week of February 2022, prices related to petrochemicals and agrinutrients/industrial metals as well as feedstock prices are being influenced by Russia Ukraine war as well as other factors such as disruption in supply of raw materials like phosphate from the region, as well as International Energy Agency’s (IEA) decision to offload over 240mn barrels of oil over next six months to make up for shortfall from ban on Russian oil exports. These factors are causing near term volatility and are benefitting select segments such as fertilizer producers due to price hikes. • Oil market volatility driven by competing factors of demand and supply. The war between Russia and Ukraine (starting in the last week of February 2022) resulted in severe economic and financial sanctions being imposed by US and Europe on Russia, which put Russia’s oil and gas supply at risk (~10mbpd or ~10% of global supply). Following the initial spike in oil prices past USD 130/barrel, prices have fallen back equally fast to below USD 100/barrel after IEA announced massive stockpile of 240 mn barrels of oil to be released over next six months, as well as lower economic activity in China (pursing zero-COVID policy). While feedstock prices (Naphtha, Saudi Propane) have seen price volatility, downstream products such as urea, phosphates have seen price rises due to shortfall from Russia/Ukraine region. • GCC region resilient amid Covid-19 and rode economic recovery wave in 2021. The year 2021 witnessed GCC region’s resilience to the pandemic, thanks to both rise in oil prices as well as shorter duration of economic restrictions compared to developed economies. As such, demand for oil and gas from major consumers like India, China and now newer customer segments like the Europe (looking to reduce dependance on Russian supply) are likely to benefit the region. Local demand for energy is expected to continue based on economic growth. • GCC companies’ proximity to commodity reserves is a cost advantage. For GCC companies dependent on oil and gas and commodity markets directly or indirectly, proximity to source of reserves helps them to be low-cost producers on the cost curve and ensure profitability even in volatile external environment. We have assumed demand, prices, and spreads of major agrinutrients like Urea and commodities like Aluminium to sustain till 2024 despite Russia Ukraine war, as the initial spikes in oil prices have subsided and long-term impact looks limited. However, risks to our valuations arise from escalation of Russia Ukraine conflict (to the extent it increases oil market volatility), and another wave of COVID-19 infections (to the extent it reintroduces restrictions on economic activities).