MOSCOW (MRC) -- Saudi Arabia’s Advanced Petrochemical Co. has registered its highest-ever estimated annual profit since its incorporation in 2021, amid higher polypropylene (PP) sales, according to ARAB NEWS.
The Jubail-based company’s net profit rose by 37% to SR815 million (USD217 million), compared to SR596 million a year earlier, it said in a bourse filing.
This was mainly driven by a 51% increase in sales of PP - used to make packaging as well as a wide array of consumer products.
Total comprehensive income surged to SR985 million, up 56% year-on-year, due to unrealized gains on equity investment during the period.
The hike came despite some drawbacks including a decline in its stake in South Korean affiliate SK Advanced Co. and higher prices of propane and outsourced propylene, among other factors that led to an increase in expenses.
As MRC wrote previously, in April, 2021, Advanced Petrochemical Co. announced that it had resumed operations at two plants in Jubail, Saudi Arabia after the completion of a scheduled turnaround. Thus, operations at the company's polypropylene (PP) plant began on 28 March, 2021, whereas operations at its propane degydranation (PDH) unit restarted on 11 April, 202. Both plants were shut for repairs on 11 March, 2021. The maintenance works were implemented in line with the occupational safety and health standards, despite the COVID-19 outbreak.
We remind that SK Advanced started up a new PP plant in Ulsan, South Korea on 23 March, 2021, and managed to produce on-specification PP at this plant in the week ending 9 April, 2021.The PP unit is a joint venture between PolyMirae and SK Advanced, using the “Spheripol” process of LyondellBasell, and have an annual output of 400,000 tons/year.
According to MRC's ScanPlast report, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.