Saudi Kayan Petrochemical cuts losses in 2Q, despite a dip in revenues

Saudi Kayan Petrochemical narrowed its losses in 2Q 2024 to SAR 250.1 mn from SAR 392 mn in 2Q 2023, with revenues declining 4.6% y-o-y to SAR 2.1 bn, it said in its earnings release (pdf). The company’s narrowing losses come on the back of higher sales prices and the collection of a partial ins. payment of SAR 130 mn for its Bisphenol plant, according to the release. Saudi Kayan’s 1H losses narrowed to SAR 821.9 mn, from SAR 1.1 bn in 1H 2023. Revenues rose 4.9% y-o-y to SAR 4.1 bn during the six-month period.

REMEMBER- Asset Manager Riyadh Capital’s 1Q 2024 earnings forecasts maintained abearish outlook for the petrochemical sector extending into 1H. Higher feedstock prices out of Aramco and a spike in shipping prices due to continued disruptions in the Red Sea weighed on the sector’s outlook, with Riyadh Capital maintaining an “uncertain-to-negative outlook in the short term for 1H 24.”