Advanced Q3 2019 net income exceeds expectations: Riyad Capital

Advanced Petrochemical’s Q3 2019 net income of SAR 213 million exceeded analysts’ and market consensus of SAR 165 million and SAR 181 million respectively, Riyad Capital said in a note.

“It will be hard for the company to pay quarterly dividends in case it goes ahead with the announced expansion plan for a SAR 6.75 billion polypropylene plant, which is 50 percent financed by Saudi Industrial Development Fund (SIDF), 25 percent by local banks and the rest internally,” the note said.

“Therefore, we lowered our target price to SAR 50 per share and maintained its Neutral recommendation,” the brokerage firm added.