Profits of the Advanced Petrochemical Company decreased by about 11% in the fourth quarter of last year, to reach about 160 million riyals, and thus were below average expectations of 188 million riyals, while the company’s profits were increased by about 37% in 2021, to reach 815 million riyals, it is the highest in its history.
In an interview with Al-Arabiya, Khalifa Al-Mulhim, Chairman of the Board of Advanced Petrochemicals, attributed the reasons for the decline in net profits in the fourth quarter to the presence of periodic maintenance for a month during which production was stopped, but the company was able to compensate for this by reducing expenses and moving to markets that make up a higher yield, from other markets, exiting China and heading towards the markets of Europe and Turkey.
In addition to this argued polypropylene plant in South Korea The losses of the “Advanced” affiliate were 26 million riyals and the increase in shipping costs was 48 million riyals during the fourth quarter, as well as a rise in material prices. prime 25% during the quarter, according to what Al-Mulhim added.
He said: “The propylene purchased is between 80 and 85 thousand tons and the agreement with SATORP has been extended for the next five years, which allows us to buy it at affordable prices suitable for both parties,” adding: “The great impact comes from the propane gas charge, which increased and affected the results. “
However, he pointed out that the cost of propane is low, so the increase in its price is offset by the increase in the price of the product, even if the increase in the price of the raw material is at higher rates.
He expected that the year would see a decrease in the prices of some products, which would be offset by a decrease in the prices of materials. prime.
He said that the company’s decision to stop production at the South Korean plant came after it suffered losses and because the project’s economy in the current condition is not appropriate, as periodic maintenance will be carried out for a month and a half and will return to the production and profitability as soon as the price of the raw material falls, according to Al-Mulhim’s confirmation.
The chairman of the Advanced Petrochemical Board indicated that the company has received praise from the Saudi Energy Efficiency Center for sustainable performance in factories, saying this improves the company’s profitability and increases its productivity.
As for the global maritime crisis, al-Mulhim predicted it would start to fade in the first and second quarters after the economic opening and steady return of supplies, considering the industry has reached its peak.
Read More About: Business News
