Saudi Kayan Petrochemical Company (Saudi Kayan) reported a loss of SAR 197 million in Q1 2019 missing Riyad Capital and consensus estimates of SAR 158 million and SAR 208 million, respectively.
The brokerage cited unfavorable market conditions for the petchem’s second consecutive quarterly loss as MEG prices suffered much more than polymers.
The company attributed the quarterly and yearly losses to decreases in average selling prices as well as increase in finance charges, but quantities sold managed to increase.
Saudi Kayan registered revenues of SAR 2.54 billion beating the brokerage’s estimates of SAR 2.37 billion. Operating profit fell by 86 percent year-on-year but rose by 60 percent quarter-on-quarter to settle at SAR 98 million.
Riyad Capital maintained its “buy” recommendation on the stock, setting the target price at SAR 18 per share.
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