Advanced selling prices rise slightly in Q1 2024: Chairman

Khalifa Al-Mulhem, Chairman of Advanced Petrochemical Co., noted that selling prices for the current quarter rose slightly compared to the previous one, but they remained lower than the same quarter last year. Prices improved in April, he noted.

In an interview with Argaam, Al-Mulhem pointed out that while feedstock prices are somewhat stable, estimating future prices is difficult due to rapid changes and geopolitical events.

He 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 affected this quarter's results, with losses increasing by SAR 12 million as sales volume declined due to scheduled maintenance.

He mentioned that despite the current stability in prices, 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- Mulhem saw no problem with demand but stressed the importance of better sales prices and lower shipping costs due to the Red Sea issues. The company remains optimistic about improvements in financial results in the coming quarters.

Advanced incurred losses of SAR 58 million by the end of the first quarter of 2024, compared to the SAR 43 million profit in the same period of 2023, Argaam reported.