Jubail, Saudi Arabia — Saudi Kayan H1 2025 loss widened to SAR 1.27 billion, up from SAR 821.95 million a year earlier, according to the company’s filing on Tadawul. Despite stronger sales volumes, falling product prices, and higher raw material costs, the net loss deepened.

Saudi Kayan H1 Loss Widens to SAR 1.27B Despite Q2 Improvement

H1 2025 revenue rose 5.2% year-on-year to SAR 4.29 billion. However, gross and operational losses nearly doubled. Input cost pressures and unfavorable pricing conditions continue to be the primary drag on margins.

Q2 2025 Loss Narrows Sequentially to SAR 496M

Saudi Kayan posted a Q2 net loss of SAR 496.35 million, significantly improved from SAR 775.78 million in Q1 2025. Revenue for the quarter climbed 8.2% to SAR 2.23 billion, as sales volumes rose.

The company attributed the improvement to lower raw material costs and higher volumes. In contrast, Q1 losses included non-recurring restructuring expenses tied to its transformation program.

Compared to Q2 2024, revenue rose 5.9%. Still, net loss widened from SAR 250.09 million due to the absence of an SAR 130 million insurance collection recorded last year.

Balance Sheet and Structural Efforts

As of June 30, 2025, Saudi Kayan’s accumulated losses totaled SAR 5.5 billion, representing 36.66% of its capital. Shareholders’ equity fell 18.2% year-on-year to SAR 10.24 billion. Loss per share was SAR 0.85, versus SAR 0.55 in H1 2024.

The company continues to implement its transformation strategy, targeting long-term cost and efficiency improvements.

What This Means for Investors

  • Revenue resilience: Higher sales volumes slightly offset price pressure.
  • Operational drag: Gross and operating losses underscore input cost challenges.
  • Balance sheet strain: Rising accumulated losses highlight capital risks.
  • Strategic progress: The transformation program continues amid challenging market conditions.

 

 

THE SAUDI STANDARD’S VIEW: Saudi Kayan’s Performance Underscores the Need for Resilient Transformation in a Challenging Cycle

Saudi Kayan’s SAR 1.27 billion net loss in H1 2025—despite sequential improvement in Q2—reflects persistent macroeconomic and sector-specific pressures affecting the petrochemical industry globally. While increased sales volumes and reduced raw material costs provided some relief in the second quarter, the widening year-to-date deficit underscores the structural headwinds the company continues to navigate.

  • The 5.2% year-on-year revenue growth to SAR 4.29 billion affirms steady operational activity. Yet, falling average product prices and feedstock volatility continue to erode profitability. These conditions mirror broader challenges in the global chemicals market, particularly in Asia-linked export segments.
  • The Q2 net loss of SAR 496 million marks a notable improvement from Q1’s SAR 776 million loss, driven by cost normalization and the absence of one-off restructuring charges. This sequential trend suggests early gains from Saudi Kayan’s ongoing transformation program, which aims to reposition the company for longer-term margin resilience.
  • Accumulated losses of SAR 5.5 billion and an 18% year-on-year decline in shareholder equity emphasize the urgency of structural reforms, including portfolio optimization, cost leadership, and capital efficiency.
  • Despite near-term losses, Saudi Kayan’s continued investment in operational realignment and digitalization remains vital to achieving scale and competitiveness in the next petrochemical growth cycle. The company is also strategically located in Jubail Industrial City, providing it with access to advanced infrastructure and regional integration benefits under Vision 2030.

Saudi Kayan’s results reflect the broader recalibration of Saudi Arabia’s petrochemical sector, where short-term pressure is prompting deeper efficiency and innovation. As global demand rebalances and sustainability imperatives reshape industry economics, transformation at firms like Kayan is essential to preserving industrial leadership in an evolving energy landscape.

 

Related Reading

• Browse the latest Saudi investment news and telecom sector developments
• Explore petrochemical sector earnings and Tadawul-listed company updates