What was Saudi Kayan's net loss in H1 2026?

Saudi Kayan reported a net loss of SAR 1,287.36 million in H1 2026, up 1.2% from the same period last year.

What are Saudi Kayan's accumulated losses?

Accumulated losses reached SAR 7,187.53 million, representing 47.92% of capital.

What was the auditor's opinion on the financial statements?

The external auditor issued an unmodified opinion with no reservations.

Saudi Kayan Posts SAR 1.29B Net Loss in First Half of 2026

Q: Why did Saudi Kayan's revenue decline in H1?

Revenue fell 18.6% due to lower quantities sold amid supply chain challenges, partially offset by higher average selling prices.

Saudi Kayan Petrochemical Co. reported a net loss of SAR 1,287.36 million for the first half of 2026, up 1.2% from the same period last year. Revenue declined 18.6% to SAR 3,496.59 million, driven by lower sales volumes amid supply chain challenges.

Saudi Kayan Petrochemical Co. (Saudi Kayan, 2350) announced its interim financial results for the six months ended June 30, 2026, posting a net loss of SAR 1,287.36 million, compared to a loss of SAR 1,272.14 million in the same period last year, a marginal increase of 1.2%. Revenue fell 18.6% to SAR 3,496.59 million, primarily due to lower quantities sold amid supply chain challenges, partially offset by higher average selling prices.

Key Financial Results

Item	H1 2026	H1 2025	Change
Revenue	SAR 3,496.59M	SAR 4,293.08M	-18.6%
Net Loss	SAR 1,287.36M	SAR 1,272.14M	+1.2%
EPS	-SAR 0.86	-SAR 0.85	-

In Q2 2026, revenue rose 35% quarter-on-quarter to SAR 2,008.87 million, driven by higher average selling prices despite lower sales volumes. However, the net loss widened 9.5% to SAR 672.76 million, mainly due to higher average costs of certain raw materials.

Highlights from the Statement

Accumulated losses: SAR 7,187.53 million, representing 47.92% of capital.
Shareholders' equity: Declined 22.8% year-on-year to SAR 7,904.57 million.
Auditor's opinion: Unmodified, with no reservations.
Company efforts: Continuing to work on containing the impact of current challenges through cost reduction initiatives and leveraging available options.

Guidance

No specific numerical guidance was provided, but the company indicated ongoing efforts to improve operational efficiency and reduce costs.

Impact on the Stock

Saudi Kayan's stock is likely to remain under pressure due to continued losses and declining revenue, though the sequential revenue improvement may ease some concerns.

What This Means for Investors

The results reflect persistent operational challenges in the petrochemical sector, particularly regarding supply chain and raw material costs. Investors should monitor oil price trends, global petrochemical demand, and the company's cost-cutting initiatives.