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Saudi Kayan moves to SAR 28m loss in Q3 2020

October 22/2020

MOSCOW (MRC) -- Saudi Kayan Petrochemical Company, a Sabic affiliate, turned to a net loss of SAR 28.16 million in the third quarter (Q3) of 2020, against net profits of SAR 1.26 million in the corresponding period a year earlier, according to Chemweek.

The move to losses was driven by a slump in the average selling prices of the company's products, according to a bourse disclosure on Tuesday.

This came despite an increase in the quantities sold, a drop in the average feedstock cost, and lower financing costs and general and administrative expenses.

Revenues slipped by 8.6% yearly, standing at SAR 2.1 billion in the July-September period.

In the first nine months of 2020, the companys losses deepened by 100.9% to SAR 943.14 million from SAR 469.36 million in the prior-year period.

As MRC wrote earlier, 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.

Ethylene oxide is one of the most important raw materials used in large-scale chemical production. Most ethylene oxide is used for synthesis of ethylene glycols, including diethylene glycol and triethylene glycol, that accounts for up to 75% of global consumption. Other important products include ethylene glycol ethers, ethanolamines and ethoxylates. Among glycols, ethylene glycol is used as antifreeze, in the production of polyester and polyethylene terephthalate (PET - raw material for plastic bottles), liquid coolants and solvents.

According to ICIS-MRC Price report, contract prices of Russian PET plants increased by Rb1,000-1,500/tonne this month under the pressure from the growth of the dollar exchange rate against the rouble.

Saudi Kayan Petrochemical Company is a manufacturing affiliate of the Saudi Basic Industries Corporation (Sabic, 35%). Saudi Kayan is the fifth-largest petrochemical manufacturer by market value in Saudi Arabia.


mrcplast.com
Author:Margaret Volkova
Tags:monoethylene glycol (MEG), PET-granulate, ethylene, packaging, PET bottles, Saudi Kayan, Russia, Saudi Arabia.
Category:General News
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