MOSCOW (MRC) -- Saudi Kayan Petrochemical Co., an affiliate of Saudi Basic Industries Corp (SABIC), has seen its 2021 earnings turn into profits of SR2.39 billion (USD640 million), buoyed by higher selling prices and sector-wide growth, according to ArabNews.
As the economic situation improved globally, the homegrown firm managed to erase losses of SR785 million from a year earlier, according to a bourse filing.
Revenues soared over 58% in 2021, and earnings per share amounted to SR1.6, against a loss per share of SR0.52 a year ago.
The improved performance was driven by higher selling prices and a drop in financing costs, despite an increase in feedstock costs, Saudi Kayan said in a bourse statement.
On a broader scale, data by Gastat earlier showed that outgoing chemical shipments picked up pace significantly prompting the Saudi non-oil exports growth to hit an annual rate of 26.1% in November.
As MRC wrote previously, Saudi Kayan conducted a 21-day scheduled maintenance at its ethylene glycol (EG) and ethylene oxide (EO) facilities at Jubail, Saudi Arabia, starting on 1 February, 2020. The company said that some of its other facilities that rely on EG and EO feedstocks would also undergo periodic maintenance and improvements.
EO is one of the main feedstocks for the production of purified terephthalic acid (PTA), which is used to produce polyethylene terephthalate (PET). And PET is used in the manufacturing of plastic bottles, films, packaging containers, in the textile and food industries.
Saudi Kayan operates a MEG plant in Jubai, Saudi Arabia, which has a production capacity of 566,000 mt/year.
According to MRC's ScanPlast report, Russia's estimated PET consumption grew to 737,590 tonnes in the first eleven months in 2021, up by 14% year on year. November estimated PET consumption in Russia rose by 25% to 75,760 tonnes versus 60,520 tonnes a year earlier.
Saudi Kayan Petrochemical Company is a manufacturing affiliate of the Saudi Basic Industries Corporation (SABIC). Headquartered in Jubail Industrial City, Saudi Kayan is a leading chemical maker operating in the Kingdom’s petrochemical sector since 2007.