RIYADH: Saudi Kayan Petrochemical Co.’s profit was dragged down by lower demand during the first quarter, the firm’s chairman, Ahmed Al-Shaikh, told Argaam.
Riyadh-listed Kayan saw its net profit plunge by 57.5 percent to SR209 million ($55.7 million), down from SR493 million for the same period last year.
Al-Shaikh attributed the profit decline to a number of challenges, including feedstock cost, subdued demand, and higher production levels in global markets, which led to lower selling prices.
According to the executive, selling prices dropped by 11 percent during the quarter, dragging down profit margins of products, especially polycarbonates and glycol ethylene.
That said, the petrochemicals maker reported higher sales of SR3.14 billion, representing a 17 percent surge from a year earlier.
“Maintaining profit, aggrandizing shareholders’ equity, and return on assets are Saudi Kayan’s top priorities,” Al-Shaikh noted.
“It is currently difficult to foresee profit this year, on the back of continued fluctuations in global markets, and volatility in product prices, which impact the company’s performance and profitability,” he concluded.
The firm is partly owned by SABIC, and operates one of the largest petrochemical production complexes in the world, in Jubail Industrial City.
