Chemanol CEO expects continued demand for products to remain high

Ali Al-Asiri, CEO of Methanol Chemicals Co.

Demand for Methanol Chemicals Co’s. (Chemanol) products are likely to remain high, especially for those used in pharmaceuticals and construction industries, Chief Executive Officer (CEO) Ali Al-Asiri told Argaam in a telephone interview.

Prices are forecast to stay steady near the current levels, he added.

The average selling prices of Chemanol’s products rose 135% year-on-year (YoY) in Q2 2021, while its plants’ operating rate hit 92%, with a production capacity of nearly 314,000 metric tons in the first half of the year.

Elsewhere, Al-Asiri attributed the second-quarter profit growth to Chemanol’s focus on enhancing plants’ operating efficiency and reliability, which, in turn, boosted production and sales.

Moreover, an increase in selling prices following the steep declines witnessed during the COVID-19 pandemic, in addition to the company’s efforts to slash costs, restructure loans and improve cash flows, contributed to this profit growth.

Chemanol posted a net profit of SAR 90 million in H1 2021, against a net loss of SAR 59.9 million a year earlier, Argaam reported.

The company’s Q2 2021 net profit stood at SAR 60.2 million.