Higher feedstock cost would impact Kayan's earnings after FY2017

19/01/2016 15:24 AST

Aljazira Capital stated in their recently issued research report that the government of Saudi Arabia recently raised natural gas, fuel, Petchem feedstock, and electricity prices to curb deficit. It increased the Ethan prices from earlier fixed subsidized rate of USD 0.75 per mmbtu to USD 1.75 per mmbtu and Methane/natural gas from 0.75 per mmbtu to USD 1.25 per mmbtu. This change is expected to increase feedstock prices for Petchem players. However, the company clarified that it was granted a grace period of seven years and three months for some feedstock, namely ethane, butane and methane, which were supplied in 2010. Accordingly, new feedstock prices will be gradually applied by 2Q-2017. The increase in electricity reprising is expected to increase the production costs by about 1% according to the company. Aljazira Capital have reworked on financial model assumptions to incorporate the impact of these changes. Based on their revised assumptions, Kayan's net income would decline by SAR42 mn in 2016 and SAR530 mn in 2018.


GulfBase.com

News

Al Jazira Capital remains "Overweight" on Saudi Kayan

22/10/2017

Net income of SAR 381.0mn, beats Al Jazira Capital estimate and market consensus. Net income was supported by higher than expected operating rate and higher margins. Gross margin increased on YoY bas

GulfBase

Saudi Kayan restarts ethylene glycol/oxide ethylene plant

11/04/2016

Saudi Kayan Petrochemical Co. restarted on Sunday a plant that produces ethylene glycol and oxide ethylene after scheduled maintenance and some technical repairs, the company said on Monday.

Reuters

Saudi Kayan swings to Q4 net loss

14/01/2016

Saudi Kayan Petrochemical Co. swung to a net loss in the fourth-quarter, it reported on Thursday.

The company, an affiliate of Saudi Basic Industries Corp (SABIC), made a net loss of 624.1

Reuters

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