Saudi Arabia's Kayan Drops Most Since 2014 After Surprise Lossby
Saudi Kayan Petrochemical Co. declined the most since December after announcing a loss in the third quarter as production, sales and prices all fell.
The chemicals company part-owned by Saudi Basic Industries Corp. retreated 9.5 percent to 9.20 riyals at the close in Riyadh, leading a slide in the Tadawul All Share Index. About 21 million shares were traded, more than two-and-a-half times the three-month daily average, according to data compiled by Bloomberg.
Kayan reported a 13.81 million-riyal ($3.6 million) loss for the third quarter, compared with a 66.91 million-riyal profit a year earlier. The mean of three analyst estimates compiled by Bloomberg was for a profit of 45 million riyals.
The loss was due to a decrease in production, sales and average selling prices, Kayan said in a statement to the Saudi bourse on Thursday. Brent crude, a benchmark for half the world’s oil, has tumbled more than 40 percent in the last 12 months, placing pressure on the economy in Saudi Arabia, OPEC’s biggest oil exporter.
Sabic, the Middle East’s biggest petrochemicals company that holds 35 percent of Kayan’s shares, plans to cut about 140 jobs in Europe and other positions around the world as it integrates some business units, the company said last week. Its shares fell 1.4 percent, the most in about a month.
Other contributing factors to Kayan’s losses include inventory revaluation, an increase in financial charges, other expenses and an increase in zakat provision, the company said.