Mamdouh AlAmari, CEO of Advanced Petrochemical Co.
Mamdouh AlAmari, CEO of Advanced Petrochemical Co., said that the outlook remains somewhat blurry given current conditions, despite higher profit margins compared to previous months, noting that this improvement is accompanied by ongoing challenges in supply chains, with hopes for a rebound in the coming period. 
It is difficult to predict sales prices; however, if current margins persist, geopolitical conditions stabilize, and supply chains improve, the company’s future performance will be strong, he told Argaam.
The CEO also explained that the company generated a profit of about SAR 20 million from the share swap transaction with SK Gas during the first quarter, expecting the positive effects of the deal to begin appearing starting in Q2 2026, through the full recognition of the company’s stake in the new plant, which will be reflected in improved company results in the future.
As regards the financial results, he noted that the main reason for the decline in net profit is the recognition of depreciation expenses and financing costs associated with the new project starting in Q3 2025, in accordance with International Financial Reporting Standards (IFRS), despite a 95% increase in sales volume.
“Depeciation expenses will continue moving forward, while financing costs are expected to decline gradually as scheduled installments are paid, in addition to the potential positive impact of a lower SAIBOR rate on financing costs,” AlAmri said.
Meanwhile, net sales prices rose by 7% compared to Q4 2025, which was due to supply chain challenges rather than rising global demand, while the company is currently facing greater supply chain pressures compared to March, he added.
AlAmari further noted that the cost-cutting measures implemented by the company during Q1 2026 helped reduce general and administrative expenses and financing costs, thereby supporting net profits compared to the previous quarter. He emphasized that Advanced will continue to focus on improving operational efficiency and reliability, which will further lower costs in the future.
Mamdouh AlAmari, CEO of Advanced Petrochemical Co.
Mamdouh AlAmari, CEO of Advanced Petrochemical Co., said that the outlook remains somewhat blurry given current conditions, despite higher profit margins compared to previous months, noting that this improvement is accompanied by ongoing challenges in supply chains, with hopes for a rebound in the coming period.
It is difficult to predict sales prices; however, if current margins persist, geopolitical conditions stabilize, and supply chains improve, the company’s future performance will be strong, he told Argaam.
The CEO also explained that the company generated a profit of about SAR 20 million from the share swap transaction with SK Gas during the first quarter, expecting the positive effects of the deal to begin appearing starting in Q2 2026, through the full recognition of the company’s stake in the new plant, which will be reflected in improved company results in the future.
As regards the financial results, he noted that the main reason for the decline in net profit is the recognition of depreciation expenses and financing costs associated with the new project starting in Q3 2025, in accordance with International Financial Reporting Standards (IFRS), despite a 95% increase in sales volume.
“Depeciation expenses will continue moving forward, while financing costs are expected to decline gradually as scheduled installments are paid, in addition to the potential positive impact of a lower SAIBOR rate on financing costs,” AlAmri said.
Meanwhile, net sales prices rose by 7% compared to Q4 2025, which was due to supply chain challenges rather than rising global demand, while the company is currently facing greater supply chain pressures compared to March, he added.
AlAmari further noted that the cost-cutting measures implemented by the company during Q1 2026 helped reduce general and administrative expenses and financing costs, thereby supporting net profits compared to the previous quarter. He emphasized that Advanced will continue to focus on improving operational efficiency and reliability, which will further lower costs in the future.
