Khalifa Al-Mulhem, Chairman of Advanced Petrochemical Co.
Khalifa Al Mulhem, Chairman of Advanced Petrochemical Co., noted that sales prices for the current quarter slightly rose compared to the previous one, yet they remain below those of the same quarter last year.
In a discussion with Argaam, he highlighted an improvement in prices in April, pointing out that while feedstock prices are somewhat stable, forecasting future prices is difficult due to rapid changes and geopolitical events.
Al Mulhem explained that a 45% decrease in sales volumes is mainly due to the scheduled maintenance of the company’s plants, alongside a 5% reduction in sales prices and higher shipping costs. He noted that investment losses in SK Advanced Co. Ltd.significantly impacted this quarter’s results, with losses increasing by SAR 12 million, primarily due to the decreased sales from maintenance.
He mentioned that despite the current price stability, the petrochemical market is expected to recover, especially as it largely depends on sales and feedstock prices. An increase in these prices would improve profit margins and, consequently, profits.
Regarding the company’s outlook for the second quarter of 2024, Al-Malhem sees no issues with demand but stressed the importance of better sales prices and lower shipping costs due to Red Sea issues. The company remains optimistic about future improvements.
Advanced incurred losses of SAR 58 million by the end of the first quarter of 2024, a downturn from the SAR 43 million profit in the same period of 2023.
Khalifa Al-Mulhem, Chairman of Advanced Petrochemical Co.
Khalifa Al Mulhem, Chairman of Advanced Petrochemical Co., noted that sales prices for the current quarter slightly rose compared to the previous one, yet they remain below those of the same quarter last year.
In a discussion with Argaam, he highlighted an improvement in prices in April, pointing out that while feedstock prices are somewhat stable, forecasting future prices is difficult due to rapid changes and geopolitical events.
Al Mulhem explained that a 45% decrease in sales volumes is mainly due to the scheduled maintenance of the company’s plants, alongside a 5% reduction in sales prices and higher shipping costs. He noted that investment losses in SK Advanced Co. Ltd.significantly impacted this quarter’s results, with losses increasing by SAR 12 million, primarily due to the decreased sales from maintenance.
He mentioned that despite the current price stability, the petrochemical market is expected to recover, especially as it largely depends on sales and feedstock prices. An increase in these prices would improve profit margins and, consequently, profits.
Regarding the company’s outlook for the second quarter of 2024, Al-Malhem sees no issues with demand but stressed the importance of better sales prices and lower shipping costs due to Red Sea issues. The company remains optimistic about future improvements.
Advanced incurred losses of SAR 58 million by the end of the first quarter of 2024, a downturn from the SAR 43 million profit in the same period of 2023.
