Saudi Kayan says accumulated losses reach 35.59% of capital
Saudi Kayan Petrochemical Co. announced that its accumulated losses reached 35.59% of its capital of SAR 15,000 million, based on the unaudited financial results for May 2025, which were closed on June 15, 2025.
In a statement on Tadawul, the company said that the amount of accumulated losses reached SAR 5,338.5 million, explaining that the main reasons behind these losses are the decline in profit margins due to lower average product prices, which were impacted by the slowdown in global economic growth and the increase in input costs.
Kayan refinanced on March 16, its Islamic Murabaha loans, amounting to SAR 8.1 billion, with several local banks. The refinancing agreement involved replacing the existing debt with new financing.
This agreement is aimed at achieving several strategic goals, most notably sustainable financial planning by maximizing cash liquidity, strengthening the financial position, and providing greater financial flexibility. This will also contribute to improving financial solvency, thereby enhancing returns for shareholders.
The company will continue working on improving production efficiency and reducing costs through the initiatives and programs that have been approved. These efforts will help lower expenses and increase revenues in order to achieve the company's objectives and strategies.
Procedures and instructions applicable on companies listed in Saudi capital market whose accumulated losses reach 20% or more out of the capital will apply, the statement added.
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