Advanced Petrochemical Co. will likely report strong profit margins in Q4 2020, CNBC Arabia reported, citing chief executive officer Fahad Salem Al Matrafi.
“Prices started to bottom out in Q4 2020. Propane prices improved, but they were not up to the polypropylene levels,” Al Matrafi added.
Advanced has a well-established presence in the local market, Al Matrafi said, adding that the company is closely monitoring its sales in the foreign markets. He also noted the resilient nature of the firm’s sales.
The petrochemicals producer is moving among markets, based on prices, Al Matrafi indicated, highlighting that Advanced established a business presence in China, Southeast Asia, Latin America and Africa.
“We will finance the remaining part of the propane dehydrogenation (PDH) and polypropylene (PP) plants via commercial loans from local banks. Advanced will arrange SAR 1.5 billion in loans, while Advanced Polyolefins Co. (APOC) will secure SAR 3 billion in credit facilities,” he stated.
Last week, Advanced said its 85%-owned subsidiary, APOC, obtained a conditional approval to secure SAR 3 billion loan from Saudi Industrial Development Fund (SIDF).
The loan facility will be utilized to finance the construction of PDH and PP plants with a nameplate capacity to manufacture 843,000 tons per annum (p.a.) of propylene and 800,000 tons p.a. of polypropylene in Jubail Industrial City, Argaam reported.
Comments
{{DisplayName}}
{{ElapsedTime}}