Advanced prioritizes debt reduction, stock price ‘unfair’: CEO

Advanced CEO Mamdouh Al-Amri says the debt repayment will positively reflect on the company’s financial results and support its return to profitability

Advanced Petrochemical Co. has liquidity exceeding SAR 100 million and its current priority is to reduce debt by repaying SAR 300 million by the end of 2026, CEO Mamdouh Al-Amri told CNBC Arabia.

The debt repayment will positively reflect on the company’s financial results and support its return to profitability, he said.

He added that the company’s production starting from June will be more than 10% higher than in 2025, while sales will be better than last year, thanks to the commissioning of a new plant, which has increased production capacity from 600,000 tons to 1.4 million tons.

Regarding shipping costs, Al-Amari stated that shipping costs increased due to higher insurance costs, reaching about $120 per ton, in addition to increased transportation costs to ports on the Kingdom’s western coast.

“The increase in product selling prices offset the rise in shipping costs. Product prices in some markets rose from about $900–$950 per ton before the geopolitical tensions to $1,400–$1,500 per ton, enabling the company to achieve operating profits,” he said.

The CEO said that Advanced has a network of distributors across Asia, Europe, Africa, Egypt, and North Africa, adding its overseas sales were unaffected due to prior agreements with distributors.

Commenting on the company’s expansion plans, Al-Amari said that Advanced continues to implement its strategy focused on stabilizing operations, increasing plant efficiency and reliability, and expanding into new markets, especially Europe.

He also noted that the company can produce more than 160 polypropylene products.

Al-Amari added that the management believes that the company’s stock is currently attractive to shareholders, as the stock price is “unfair” given the company’s current position and prospects. He, however, confirmed that the company has no intention of repurchasing its shares at present.

According to data available with Argaam, Advanced reported a net loss of SAR 69 million in the first half of 2026, compared to a net profit of SAR 153 million a year ago.

Al-Amari added that the management believes that the company’s stock is currently attractive to shareholders, as the stock price is “unfair” given the company’s current position and prospects. He, however, confirmed that the company has no intention of repurchasing its shares at present and that the stock valuation will continue to be determined by the market movement and investors.