News - Middle East - Saudi Arabia: Saudi Kayan Petrochemical Company incurred losses of about $ 209 million during fiscal year 2020, recording an increase of 23% in losses.

The Saudi company said that the total losses it lost  during the fiscal year ending on December 31, 2020, amounted to about 784 million riyals (209 million dollars). The company's losses in 2019 amounted to about 636 million riyals ($ 169 million), which means that losses increased by 23%.

The company stated that the reason for the increase in net loss is "a decrease in the average selling prices of products, in addition to the decrease in the quantities produced and sold." It pointed out that this came as a result of the suspension of most of the company's factories, due to the scheduled periodic maintenance that had been previously announced.

Kayan was established in 2006, after the Saudi Basic Industries Corporation (SABIC) entered into a partner with “Kayan Petrochemical Company,” which was later called “Kayan,” and its annual production capacity exceeds 4 million metric tons of petrochemical and chemical products.

Sources explained that the company is in talks with lenders to secure the financing package on appropriate terms, to be presented afterwards to investors.