Savola to raise costs by SR105m in 2016

JEDDAH —  Savola Group, Saudi Arabia's largest food products company, said on Tuesday that changes to energy and gas feedstock prices announced by the government will raise its costs by around SR105 million ($28 million) in 2016. Companies in the kingdom have been announcing estimates of the impact on their earnings of fuel, electricity and natural gas feedstock price hikes in the 2016 state budget. Saudi Arabia, its finances hit by low oil prices, announced plans last month to shrink a record state budget deficit with spending cuts, reforms to energy subsidies and a drive to raise revenues from privatization. — Reuters