Saudi Kayan’s official: Kayan’s loss is merely an accounting loss

The Chairman of the BOD of Saudi Kayan Petrochemical Company, Eng. Motleq Al-Moraished, said that the company’s loss is an accounting loss due to changing the inventory valuation method.

He also said that most of Kayan’s products are profitable products that generate reasonable profit.

“83% of Kayan’s output relies on Butane gas which witnessed a dramatic price increase lately. The complex’s production is divided into two parts; the first part is produced to be sold and the other is used as an input for other products and this clarifies the gap between production volume and sales volume”; he added in phone call to CNBC Arabia.

The company’s long term loans are closed to SAR 35bn but the company is solvent and capable of repaying the installments due every six months on a timely basis from its internal resources; he continued.