Advanced sees higher Q4 sales despite global price pressures: CEO

Mamdouh Al-Omari, CEO of Advanced Petrochemical Co.

Advanced Petrochemical Co. expects sales volumes to rise in Q4 2025 compared to the previous quarter after the company’s two polypropylene (PP) lines reached design capacity last September. Profitability will hinge on margin improvement tied to global supply–demand dynamics, CEO Mamdouh Al-Omari told Argaam.

Al-Omari said selling prices softened in early October, noting the global petrochemicals industry faces multiple headwinds, including increased Chinese supply, higher financing costs and geopolitical volatility.

Commenting on Q3 results, where Advanced’s profit rose to SAR 72 million from SAR 46 million in Q3 2024, he attributed the rise mainly to an 82% jump in sales volumes following the start-up of Advanced Polyolefins Industry Co.’ two PP lines in Q3 2025, as well as declines of 23% and 9% in purchased propane and propylene prices, respectively.

The company also booked a zero share of losses from SK Advanced in Q3 2025 after recognizing an impairment of that investment last year.

Revenue grew 58% in Q3, primarily on an 82% volume increase following the operation of the PP lines, despite a 14% drop in net selling prices.

On the financial impact of the PP project, Al-Omari said operations have been accretive, lifting sales volumes by 82% year on year (YoY) and 54% quarter on quarter (QoQ). The company is focused on stabilizing plants and enhancing reliability and operating efficiency.

Moreover, the recent US interest-rate cuts could underpin global demand and support operating margins, with 2026 margins expected to be broadly in line with 2025. Global petrochemicals demand in Q3 2025 had little effect on Advanced’s volumes but weighed on pricing, which fell 14% YoY and 5% QoQ.

European, Turkish and African markets delivered the most stable returns, consistent with the company’s strategy of prioritizing higher-margin markets, he concluded.