Maintenance helps boost Advanced's output, bottom-line: Chairman

Advanced Petrochemical Co. recorded its highest ever quarterly net income in the second quarter of 2018 on improved production and lower costs, Chairman Khalifa bin Abdullatif Al-Mulhem told Argaam on Monday.

The improvement in the company's bottom-line is attributable to the comprehensive plant maintenance work carried out in the previous quarter, the top executive said.

The company reported a second-quarter net profit of SAR 253 million -- 30 percent higher than the same quarter a year earlier.

In a phone interview with Argaam, Al-Mulhem said the company’s plants were operating at full capacity: the propylene plant’s output has increased from 450,000 tons to 490,000 tons, while polypropylene output has risen from 450,000 tons to over 585,000 tons annually.

Saudi Aramco Total Refining and Petrochemical Co. (SATORP) will provide Advanced with 80,000 tons of propylene during 2018, Al-Mulhem said, adding that the two firms are in talks over increasing the volumes to 100,000 tons next year.

Regarding the talks over Rufayah Chemicals Company’s (RCC) project for (Pygas) and Pyoil products in the Kingdom, the chairman highlighted that the matter is still under discussion, and no final investment decision has been taken yet.

Any updates in this regard will be announced in the second half of 2018, he said.

In November, Saudi-listed Advanced Petrochemical signed agreement to develop Pygas and Pyoil Downstream Project in Jubail Industrial City II with Global Company for Downstream Industries (GDI) at $580 million (SAR 2.17 billion).