Saudi Kayan accumulated losses hit 35.59% of capital

Saudi Kayan Petrochemical Co. headquarters

Saudi Kayan Petrochemical Co. said its accumulated losses reached 35.59% of its SAR 15 billion capital, based on unaudited financial results for May 2025, which closed on June 15.

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In a statement to Tadawul, the company reported accumulated losses of SAR 5.34 billion, attributing the decline primarily to lower average product prices and rising input costs.

The fall in prices was driven by slower global economic growth, Saudi Kayan explained.

On March 16, Saudi Kayan refinanced SAR 8.1 billion in Islamic Murabaha loans with several local banks, replacing existing debt with new financing.

The refinancing aims to support sustainable financial planning by maximizing cash liquidity, strengthening the company’s financial position, and increasing financial flexibility. It is also expected to improve solvency and enhance shareholder returns.

Saudi Kayan said it will continue efforts to improve production efficiency and cut costs through approved initiatives and programs, in a bid to reduce expenses and grow revenue.

The company added that regulations applying to listed firms with accumulated losses equal to or greater than 20% of capital will now apply.

According to data compiled by Argaam, Saudi Kayan’s losses widened to SAR 775.8 million by the end of Q1 2025, compared to losses of SAR 571.9 million in Q1 2024.