Fahad Al Matrafi, CEO of Advanced Petrochemical Co.
Advanced Petrochemical Co.’s cash flow is strong and continues to grow, bolstered by the trial production of one of the lines in its new project, CEO Fahad Al Matrafi stated, adding that the second production line is expected to launch next month, with a capacity of over 800,000 tons per year of polypropylene. 
Al Matrafi highlighted that the new project will boost cash flow with additional production, with financial impacts expected in Q2 2025 results.
He said the company is not currently expanding outside Saudi Arabia, with its focus on completing the new project. A growth plan is regularly reviewed by the board.
In Q1 2025, earnings improved due to an 88% year-on-year (YoY) increase in sales volumes compared to the same period last year, which was impacted by scheduled maintenance. Volumes also grew 3% quarter-on-quarte (QoQ), Al Matrafi said.
Net selling prices increased 4% QoQ from and 2% YoY, while propane feedstock prices fell by 8% QoQ, he added.
The CEO noted that the company avoided recognizing losses from its stake in SK Advanced in 2025, having already booked an impairment in 2024.
The company expects continued market recovery, with lower shipping costs in Q1 and seasonal propane price softness in summer, which should support Q2 results.
He emphasized the need to monitor tariff-related decisions, which could affect supply-demand dynamics, shipping, feedstock, and product prices, along with inflation and interest rates.
Al Matrafi confirmed that Advanced Polyolefins Industry Co., a subsidiary, secured SAR 3 billion from the Saudi Industrial Development Fund and SAR 4.5 billion in commercial loans. These will be repaid using operational cash flows.
The parent company, Advanced, has approximately SAR 2 billion in current debt. Al Matrafi stated that any new viable projects would be evaluated for suitable financing options.
Advanced reported a net profit of SAR 72 million in Q1 2025, recovering from a loss of SAR 58 million in Q1 2024, according to Argaam’s data.
Fahad Al Matrafi, CEO of Advanced Petrochemical Co.
Advanced Petrochemical Co.’s cash flow is strong and continues to grow, bolstered by the trial production of one of the lines in its new project, CEO Fahad Al Matrafi stated, adding that the second production line is expected to launch next month, with a capacity of over 800,000 tons per year of polypropylene.
Al Matrafi highlighted that the new project will boost cash flow with additional production, with financial impacts expected in Q2 2025 results.
He said the company is not currently expanding outside Saudi Arabia, with its focus on completing the new project. A growth plan is regularly reviewed by the board.
In Q1 2025, earnings improved due to an 88% year-on-year (YoY) increase in sales volumes compared to the same period last year, which was impacted by scheduled maintenance. Volumes also grew 3% quarter-on-quarte (QoQ), Al Matrafi said.
Net selling prices increased 4% QoQ from and 2% YoY, while propane feedstock prices fell by 8% QoQ, he added.
The CEO noted that the company avoided recognizing losses from its stake in SK Advanced in 2025, having already booked an impairment in 2024.
The company expects continued market recovery, with lower shipping costs in Q1 and seasonal propane price softness in summer, which should support Q2 results.
He emphasized the need to monitor tariff-related decisions, which could affect supply-demand dynamics, shipping, feedstock, and product prices, along with inflation and interest rates.
Al Matrafi confirmed that Advanced Polyolefins Industry Co., a subsidiary, secured SAR 3 billion from the Saudi Industrial Development Fund and SAR 4.5 billion in commercial loans. These will be repaid using operational cash flows.
The parent company, Advanced, has approximately SAR 2 billion in current debt. Al Matrafi stated that any new viable projects would be evaluated for suitable financing options.
Advanced reported a net profit of SAR 72 million in Q1 2025, recovering from a loss of SAR 58 million in Q1 2024, according to Argaam’s data.
