Saudi Kayan Petrochemical Company, one of the largest petrochemical complexes in Jubail Industrial City, finds itself under growing investor scrutiny as the company prepares to release its fourth-quarter 2025 financial results on February 19. The SABIC affiliate, listed on the Saudi Exchange under ticker 2350, has experienced a sustained decline that has erased billions in market value over the past five years.
A Challenging Period for the Petrochemical Giant
The numbers paint a sobering picture. Saudi Kayan’s share price has fallen approximately 68 percent over the past half decade, with a 31 percent drop in the last twelve months alone. The most recent 90-day period brought an additional 18 percent slide, shedding an estimated 420 million riyals in market capitalization in a single week. Revenue has contracted by roughly 4.2 percent annually over the five-year stretch, a trend that has weighed heavily on investor confidence.
The broader Saudi petrochemical sector has not been immune to headwinds either. Global oversupply, softening demand from key markets, and compressed margins have created a difficult operating environment for producers across the Kingdom. Seven of the ten major petrochemical stocks listed on Tadawul recorded double-digit declines over the past year, reflecting a sector-wide challenge rather than an issue unique to Saudi Kayan.
What Investors Are Watching on February 19
The upcoming earnings announcement carries significant weight. Analysts and market participants will be closely examining whether the company has managed to stabilize its revenue base during the final quarter of 2025 and whether operational efficiencies have helped narrow losses. Any signals regarding feedstock cost management and end-product pricing trends will also be critical for shaping the near-term outlook.
Saudi Kayan operates one of the world’s largest integrated petrochemical complexes, producing a diverse range of products including polyethylene, polypropylene, ethylene glycol, and polycarbonate. The facility, constructed through a joint venture between SABIC and Al-Kayan, required over 140 million work hours and a peak workforce of 40,000 during its build-out phase. Its strategic location in Jubail Industrial City provides access to competitive feedstock and robust export infrastructure.
The Road Ahead for Saudi Petrochemicals
Despite the current challenges, the long-term fundamentals of Saudi Arabia’s petrochemical industry remain tied to the Kingdom’s broader economic diversification strategy under Vision 2030. The sector continues to benefit from some of the lowest feedstock costs in the world, and ongoing investments in downstream value-added manufacturing could eventually provide a more favorable margin environment for companies like Saudi Kayan.
For now, all eyes remain on the February 19 earnings release. Whether Saudi Kayan can demonstrate meaningful progress toward profitability will determine whether the stock’s prolonged decline begins to reverse or continues its downward trajectory. The result will also serve as an important barometer for the health of the Kingdom’s petrochemical sector as a whole heading into 2026.
