Saudi Kayan widens H1 2020 net loss by 94.4% to SAR 915 mln

Saudi Kayan Petrochemical Co. (Saudi Kayan) widened its net loss after Zakat and tax by 94.4% year-on-year (YoY) to SAR 915 million for the first half of 2020, compared to SAR 470.6 million a year earlier.

The firm attributed the increase in losses to lower selling product prices and sales volumes due to the scheduled periodic maintenance in the first quarter.

The loss was incurred despite lower feedstock and financing costs, and a decrease in administrative and general expenses.

The company posted a net loss of SAR 398.1 million in Q2 versus SAR 273.1 million a year earlier, a 45.8% YoY rise, due to lower average selling prices and sales volumes despite lower feedstock and financing costs.

On a quarterly basis, Saudi Kayan narrowed its net loss by 22.9% due to lower average feedstock cost and commencement of plant operations after the scheduled maintenance in Q1.

Total shareholders’ equity, after minority interest, for the period amounted to SAR 13.9 billion compared to SAR 15.1 billion in the same period a year earlier, a decrease by 7.92%.

The company also added that accumulated losses at the end of the current period stood at SAR 1.61 billion, or 10.76% of the capital.

Saudi Kayan previously announced a 21-day scheduled maintenance of its ethylene glycol/ ethylene oxide plants, which started on Feb. 1, 2020. The firm expected a financial impact of SAR 117 million on Q1 2020 financials based on the current average selling prices of these products.