Saudi Kayan Petrochemical Co. reported a net loss in the fourth-quarter, , hurt by product prices that have tumbled along with feedstock oil, as per Reuters. The company has reported a net loss of 624.1 mln riyals (US$166.3 mln) in the three months to Dec. 31 vs a profit of 11.78 million riyals in the same period of 2014. This is the fourth straight quarter the petrochem major failed to achieve a profit. The company is an affiliate of Saudi Basic Industries Corp (SABIC) and is the first major petrochemicals firm in the kingdom to report earnings.
Kayan cited a drop in the average selling prices of most products as the main reason for the fourth-quarter loss, as well as an impairment on its spare parts inventory. These factors outweighed the benefits of a drop in feedstock costs, an increase in overall sales volume and a drop in marketing fees from SABIC, it said, without providing sales figures.
As per Reuters, like many petrochemical firms in the kingdom, Kayan's earnings have been hit hard by falling product prices as they are closely tied to the price of oil, which is languishing at 12-year lows. Saudi producers have also benefited from subsidised energy and feedstock costs, so lower crude prices compress their profit margins.
18-Jan-16 
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