Dubai – Saudi Kayan Petrochemical Company significantly reduced its quarterly net losses by 72 percent during the third quarter of 2026. This improvement marks a notable shift in the company’s financial performance, coinciding with rising revenues and a transition from operational losses to profits.
Financial Performance Highlights
The company reported net losses of 94.20 million Saudi riyals, equivalent to approximately 25.12 million US dollars. This figure represents a substantial decrease compared to the 336.25 million riyals lost during the same period last year. On a sequential basis, losses dropped by 85.9 percent relative to the second quarter of 2026, where the firm incurred 672.76 million riyals.
Revenue and Operational Metrics
Revenues for the third quarter reached 2.188 billion riyals, up 1.63 percent from the 2.152 billion riyals recorded in the corresponding quarter of the previous year. The company achieved operating profits of 52.07 million riyals, reversing an operating loss of 163.06 million riyals seen in the third quarter of 2025. Gross profits also improved, reaching 587.09 million riyals against prior-year losses of 88.08 million riyals.
Sales Volume and Pricing Dynamics
Sales volumes increased by 46 percent in the third quarter of 2026 compared to the second quarter. However, average selling prices fell by 25 percent. Despite downward pressure on product prices, higher sales volumes supported overall revenue figures. Free cash flow rose slightly by 0.78 percent to 577.49 million riyals from the previous quarter’s 573.01 million riyals.
Accumulated Losses and Capital Structure
Despite the quarterly improvement, accumulated losses stood at 48.54 percent of its capital by the end of September 2026. Total equity capital amounts to 15 billion riyals. The company cited global economic slowdowns and rising input costs as key factors contributing to these accumulated deficits, while emphasizing continued efforts to enhance operational efficiency.
Nine-Month Cumulative Results
For the first nine months of 2026, net losses totaled 1.382 billion riyals, down 14.10 percent from 1.608 billion riyals in the same period of 2025. Revenues declined by 11.81 percent to 5.685 billion riyals. Conversely, profits rose by 10.39 percent to 745.49 million riyals. Operating losses for the period amounted to 932.03 million riyals, compared to 1.118 billion riyals previously.
This story was produced in the newsroom from the disclosed sources named above.
