Ahmed Al-Shaikh, Chairman of Saudi Kayan Petrochemical Co.


Saudi Kayan Petrochemical Co.’s Q1 2022 profit margins, particularly of polycarbonates and glycol ethylene, were hit by an 11% decline in product average selling prices, on the back of subdued demand and higher production in some global markets, Chairman Ahmed Al-Shaikh told Argaam.

 

Sales volumes in Q1 2022 edged down 1% quarter-on-quarter, but jumped 18% year-on-year.

 

Al-Shaikh explained that feedstock cost is one of the biggest challenges to the company, as it is directly linked to energy prices, which weigh on Saudi Kayan. The company’s production is based on olefins and 80% of its products depend on butane, which hit fresh records in the last two quarters.

 

“Maintaining profit, aggrandizing shareholders’ equity and return on assets are Saudi Kayan’s top priorities,” he affirmed. The company also seeks to maintain high sales and market its higher-margin products in global markets. Meanwhile, Saudi Kayan aims to continue its optimal deployment of cash, reduce costs, loans and other financial burdens.

 

“It is currently difficult to foresee profit this year, on the back of continued fluctuations in global markets, and volatility in product prices, which impact the company’s performance and profitability,” Al-Shaikh concluded.

Comments 0

Be the first to comment

loader Train
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.

Market Indices

Created with Highstock 6.0.710:…10:0011:0012:0013:0014:0015:0012,025.0012,050.0012,075.0012,100.0012,125.00
Close : 12097.75 | Jan 9, 15:20

Quotes

Created with Highstock 6.0.710:…10:0011:0012:0013:0014:0015:006.606.656.706.756.806.85
Close : 6.67 | Jan 9, 15:20


Call Request

Argaam Investment Company has updated the Privacy Policy of its services and digital platforms. Know more about our Privacy Policy here.

Argaam uses cookies to personalize content, to provide social media features and analyze traffic, that we might also share with third parties. You consent to our cookies if you use this website