Friday 28 January 2022

Saudi Kayan swings to Q2 net profit on lower feedstock costs

RIYADH, July 21, 2016

Saudi Kayan Petrochemical Company swung to a net profit in the second quarter on Thursday, ending a run of five straight quarterly losses, benefiting from low feedstock costs.

The company, an affiliate of Saudi Basic Industries Corp (Sabic), made a net profit of SR91.02 million ($24.27 million) in the three months to June 30, it said in a bourse statement.

This compares with a loss of SR13.42 million ($3.58 million) in the same period of 2015.

The average estimate of three analysts polled by Reuters was for a quarterly loss of SR184.2 million ($49.12 million).

Like many petrochemical firms in the kingdom, Kayan's earnings have been hit hard by falling product prices as they are closely tied to the price of oil.

In addition to the feedstock costs, Kayan cited higher sales quantities and reduced marketing fees from Sabic for its return to profit.

It restarted April 10 a plant that produces ethylene glycol and oxide ethylene which was offline since the start of March for scheduled maintenance. The financial impact of the shutdown was estimated to be SR96 million ($25.60 million), split across its first- and second-quarter results. - Reuters

Tags: | Saudi Kayan | Net Profit | Q2 |

More Energy, Oil & Gas Stories

calendarCalendar of Events