Khalifa Al-Mulhem, Chairman, Advanced Petrochemical Co.
Advanced Petrochemical Co.’s robust earnings in Q3 2021 were driven by higher product prices, Chairman Khalifa Al-Mulhem told Argaam in a telephone interview.
Product prices rose by nearly 51% to $1,375 per ton during the current period, compared to $900 per ton last year, whereas feedstock prices surged 70% to $440/ton from $260/ton a year earlier.
As for the impact of supply chain challenges on the company, Al-Mulhem expected shipping prices to continue rising until year-end and early 2022. He indicated that there is a limited increase in costs from $24 to $50 per ton, compared to the selling prices, with no impact on the company’s results.
Commenting on Saudi Aramco’s decision to raise prices of butane and propane to their highest level in seven and a half years, Al-Mulhem expected the company to absorb such an increase, hoping higher product prices will accompany the growth to balance out propane prices.
The chairman expected the petrochemicals prices to improve in Q4 2021 on higher energy prices and a healthier global economy.
Advanced is looking forward to tentative, yet non-significant increases in feedstock prices, he noted.
Meanwhile, the company’s project in Al Jubail received several letters of interest, which represent three times the company’s financing needs, thanks to the company’s strong position and the project’s success.
Advanced Petrochemical Co. reported an estimated net profit after Zakat and tax of SAR 654 million for the first nine months of 2021, a rise of 57% compared to a net profit of SAR 415.8 million a year earlier. In Q3 2021, Advanced net profit jumped 39% to SAR 218 million from SAR 156 million in the year-ago period, Argaam reported.
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