Advanced focuses on boosting efficiency, sees prices rebounding in next 9 months: Chairman

Khalifa Al Mulhem, Chairman of Advanced Petrochemical Co.

Khalifa Al Mulhim, Chairman of Advanced Petrochemical Co., said that the company is taking several steps to improve production efficiency and consumption and reduce expenses, indicating that more focus will be on made with the aim of achieving stability in financial results.

Speaking to Al-Arabiya TV, the top official said that this comes in anticipation of an improvement in global prices, which is expected to occur within the next 6 to 9 months.

The petrochemical sector is going through unprecedented challenges, as prices are still under pressure due to the uncertain global situation and geopolitical events such as the Ukraine-Russia war. In addition, the recent geopolitical turmoil in the Middle East will unlikely affect the sector, but rather will weigh on oil prices, according to the top official.

He added that the economic situation in China, high interest rates and inflation have greatly pressured demand and squeezed prices.

The company is performing strongly in various markets. It focuses on markets where selling has large margins, such as Africa, South America, and Turkey. As for Southeast Asia, Advanced sells to Bangladesh and Pakistan, where demand and selling prices are better than those in China, said Al Mulhim.

He further pointed out that, if product prices improve in China, the company may move to it, indicating that this is unlikely to happen as China has surpluses, and if its economy improves significantly and the surplus is absorbed, there will be additional demand and prices will rebound, then it will be possible for the company to enter the Chinese market.

According to data available to Argaam, Advanced profits fell to SAR 148 million in 9M 2023, from SAR 300.9 million in the same period a year ago. Q3 profit amounted to SAR 45 million.