Saudi Kayan Lowers Expected Impact From Energy Reforms
Saudi Kayan Petrochemical Co. revised on Tuesday the expected impact from changes to energy and gas feedstock prices announced by the government to lower than previously forecast.
Feedstock bought at 2010 prices will help limit the impact of the reforms on this year's total production costs to a 1 percent increase, from the previously-anticipated impact of an 8.5 percent rise, Kayan said in a bourse statement.
Kayan was among a few companies that received a grace period of seven years and 90 days for receiving feedstock at subsidised prices. This grace period will end in the second quarter of 2017.
After the end of the grace period, feedstock prices and production costs for Kayan will gradually rise until the fourth quarter of 2017. The increase will depend on the actual cost of feedstock at that time, the statement added.
Kayan's feedstock includes ethane, butane and methane.
(Reporting by Nadia Saleem and Celine Aswad)
