NCB Cap places Saudi Kayan under review on Q1 losses

Saudi Kayan Petrochemical Co.’s (Saudi Kayan) Q1 2019 losses amounting to SAR 197.5 million came as a negative surprise, versus NCB Capital’s forecasts of generating SAR 203 million profit, the brokerage said in a note.

The results’ continuous weakness raises concern, they may reflect the industry’s negative performance, NCB Capital said.

NCB Capital placed Saudi Kayan stock “under review” until further details are revealed, it added.

Saudi Kayan reported a net loss after zakat and tax of SAR 197.5 million for the first quarter of 2019, compared to a net profit of SAR 462.6 million a year earlier due to lower selling prices of products and higher financing charges, Argaam reported.

When compared to the previous quarter, net loss expanded in Q1 by 78.1 percent on higher selling prices and higher financing charges, despite reporting higher sales and lower general and administrative expenses.