Saudi Kayan misses Q2 forecast on higher expenses: Riyad Capital

Saudi Kayan Petrochemical Co.’s Q2-2015 net loss of SAR 13 million fell well below Riyad Capital’s estimate of a SAR 35 million net profit, the brokerage firm said in a report.

The petrochemical producer’s quarterly results also missed a consensus forecast of a SAR 23 million net profit.

Higher administrative and financial expenses were said to have weighed on earnings during the period.

The investment arm of Riyad Bank affirmed a “hold” rating on the stock and kept its target price unchanged at SAR 12.

Third-quarter and fourth-quarter results are expected to improve as a result of the company’s agreement with Saudi Arabia’s ministry of petroleum and mineral resources and SABIC. The initiative is expected to boost Saudi Kayan’s production capacity and cut marketing costs by one third, the report added.