Saudi Kayan records losses of 812.2 mln during Q3

Saudi Kayan Petrochemical Company recorded a net loss after zakat and tax in the third quarter of SR812.2 million, compared to a profit of SR667.4 million in the same quarter of last year.
This came after the announcement on Monday of the preliminary financial results for the period ending on September 30, 2022 (nine months).
The operational loss amounted to SR675.5 million in the third quarter, compared to a profit of SR788.8 million in the same quarter of the previous year.
As for the net loss after zakat and tax in the 9-month period, it amounted to SR452.7 million, compared to a profit of SR1.94 billion in the same period last year.
The gross shareholders’ equity “without minority rights” amounted to SR16.3 billion in the current period, compared to SR15.9 billion in the same period last year, an increase of 2.2%.
The loss per share in the current period amounted to SR0.3, compared to a profit of SR1.29 in the same period last year.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is:
The reason for the net loss compared to the same quarter of the previous year is due to decrease in the average selling prices of the product, in addition, to an increase in the average cost of feedstock, despite of increase in the quantities sold.
The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is:
The reason for the net loss compared to the previous quarter is due to a decrease in the average selling prices of products and an increase in the cost of sales, despite of decrease in the average cost of feedstock and an increase in quantities sold.
The reason for the increase (decrease) in the net profit during the current period compared to the same period of the last year is:
The reason for the net loss compared to the same period of the previous year is an increase in the average cost of feedstock and a decrease in the average selling prices of products despite the increase in the quantities produced and sold.
Certain previous period expenses have been reclassified to conform to the presentation of financial statements in the current period.
Referring to what was previously announced on Saudi Stock Exchange (Tadawul) website on 27/01/2022. Its part of the periodic follow-up to evaluate the Company’s investments and adapt its accounting treatments to adequately reflect the relevant partners’ agreement, we would like to note that the Company has re-evaluated some significant management judgments and estimates related to determining whether the Company has control, joint control or significant influence in its investment in Saudi Butanol Company Limited.
Whereas Saudi Kayan Company owns 33.33% of the Saudi Butanol Company’s shares capital, the re-evaluation thereof resulted in a change in the accounting treatment and classification of this investment as a “joint operation” in accordance with IFRS 11 “Joint Arrangements” instead of categorizing it as an investment in an “associate company” in accordance with International Accounting Standard IAS No. 28 “Investments in Associates and Joint Ventures”. This change in the accounting treatment was applied during the fourth quarter of the year 2021 with a retroactive effect.
This change did not have any financial impact on the opening equity balances, as well as the company’s net results in the previous announced years/periods. Some of the financial effects were confined to the opening balances of some items in the statement of financial position and the presentation of the income statement for the year 2021. This investment was recognized by recording the Saudi Kayan share of assets, liabilities, revenues, and expenses in the financial statements for all relevant years/periods.