Saudi Kayan is a Saudi joint-stock company engaged in industry and investment in the chemical and petrochemical industries. The main office is located in Jubail.
The company’s initiatives are aimed at investing in petrochemical projects and on the management of industrial facilities. Saudi Kayan also maintains utility companies that supply resources to their plants. Saudi Kayan products are derivatives and chemical products that are used in everyday life.
Aware of the responsibility to maintain an ecological level at an acceptable level, the company controls the pollution of air, water, and soil near industrial facilities. Industrial hygiene also includes compliance with environmental regulations, laws, and standards.
Among other things, Saudi Kayan emphasizes the importance of providing a safe working environment for employees. The management of the company continuously reminds all employees and contractors of the observance of safety rules, which are especially crucial in the chemical field.
The company appeared in 2006 when Saudi Basic Industries Corporation became a strategic partner in its creation and took a $ 4.8 billion loan to establish Saudi Kayan. Samba Financial Group and BNP Paribas acted as financial consultant and organizer.
After that, Kellogg Brown and Root received permission to build a 1.55 million tonne annual Saudi Kayan ethylene plant. In 2007, the company signed contracts for the construction of enterprises for the production of bisphenol-A, polycarbonate, polyolefin, polypropylene, polyethylene, and so on. In 2008, it entered into a 15-year agreement with local and international banks for $ 6 billion for the construction of an enterprise complex. Saudi Kayan was put into operation already in 2009, and in 2010 the project was wholly completed.
The interim financial statements published by the company for the second quarter of 2019 indicate that the company incurred losses of 273.13 million rials. Profit for the second quarter of this year amounted to 878.65 million riyals. Saudi Kayan revenue was down 31.07% year on year and amounted to 2.42 billion riyals for the three-month period that ended in June.
According to representatives and the chief executive officer of the company, the reason for the net loss is a decrease in the average selling price of products along with an increase in financing costs. The losses turned out to be quite large even despite a reduction in the average cost of raw materials, as well as a decrease in administrative and general expenses, expenses on sales and logistics.
Saudi Kayan suffered losses in the first half of 2019. They amounted to 470.62 million riyals, while the profit for this period is 1.34 billion riyals. Revenue was also reduced. They decreased by 20.4% to 4.97 billion riyals compared to 6.25 billion riyals for the same period last year. Losses per share for the first six months of 2019 amounted to -0.31%.
However, in 2018, a different situation was observed. The net profit of Saudi Kayan amounted to 1.7 billion riyals, which is 154.8% more than in the previous year. The company explains the indicators in this way: there were improvements in operating indicators at many plants. Continuing the logical chain, he notes: this led to an increase in production and sales. Last year, despite an increase in administrative and other expenses, the average sales price also increased.