MOSCOW (MRC) - Saudi Kayan, Saudi Arabia's fifth-largest petrochemical manufacturer by market value, blamed lower sales volumes and reduced product prices as it swung to a third-quarter loss, said Reuters.
The company, an affiliate of Saudi Basic Industries Corp (SABIC), made a net loss of 13.8 million riyals (USD3.7 million) in the three months to Sept 30, compared to a profit of 66.9 million riyals in the year-earlier period, it said in a bourse statement.
Three analysts polled by Reuters had forecast a wide range for Kayan's quarterly earnings - from a loss of 120 million riyals to a profit of 38.8 million riyals.
Kayan blamed lower production, sales volumes and average selling prices for the quarterly loss. Other contributing factors included inventory revaluation, an increase in financial charges and other expenses. The net loss comes despite lower feedstock cost, Kayan said.
As MRC informed before, Saudi Arabia’s Oil Ministry allocated an additional 10m cbf/d (2.8m cbm) of ethane to Saudi Kayan Petrochemical Co (Al Jubail / Saudi Arabia) to enable an expansion of capacity at its Al Jubail complex. The company plans to widen its ethylene production by at least 93,000 t/y and its ethylene oxide capacity by 61,000 t/y from the second quarter of 2017.
Saudi Kayan Petrochemical Company is a manufacturing affiliate of the Saudi Basic Industries Corporation (Sabic). Manufacturing a wide range of petrochemicals, the Riyadh-based company’s products include ethylene, propylene and derivatives. Saudi Basic Industries Corporation (SABIC) formed Saudi Kayan Petrochemicals Company in 2007 to produce chemicals for export at the Jubail Industrial City on the Kingdom’s east coast. SABIC owns 35% of the company. A private shareholder, Al Kayan Petrochemical Company, holds a further 20%. The remaining 45% is held by Saudi shareholders following an initial public offering last year.
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