Advanced chairman Khalifa Al-Mulhem
Advanced Petrochemical Co.’s (Advanced) Q1 2021 strong financial results were buoyed by higher global polypropylene prices, despite suspended production at the company’s plant due to scheduled maintenance, Chairman Khalifa Al-Mulhem told Argaam in a telephone interview.
Polypropylene prices reached $1,400 by the end of the first quarter, Al-Mulhem said, adding that the company’s profit after expenses came in at $1,330. Advanced also entered new competitive markets with solid prices for its products.
Moreover, feedstock costs saw a marginal rise in the first quarter of the year, compared to the surge they witnessed last year.
SK Advanced Co. Ltd. was operating at full capacity, contributing to an increase in profit, compared to last year, when the company implemented periodical maintenance, the chairman stated, expecting robust earnings this year.
The performance of the petrochemicals market was solid in the first quarter, as prices of most products rose, which will help many market players post strong results in the first quarter.
Additionally, Al-Mulhem expects Advanced to post positive results for the second quarter of the year, noting that prices are still at the same levels despite a marginal decline.
Commenting on the impact of ‘Shareek’ program on the company’s dividends, he affirmed that dividends are an essential part of Advanced’s policy, ruling out any negative impact.
Advanced reported a net profit after Zakat and tax of SAR 171 million for the first quarter of 2021, an increase of 64% from SAR 104 million in the same period last year, Argaam reported.
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