Advanced net profit declines 27% to SAR 259 mln in H1 2020

Advanced Petrochemical Co. reported an estimated net profit after Zakat and tax of SAR 259 million for the first half of 2020, a 27% year-on-year (YoY) drop, compared to SAR 354.2 million in the same period a year ago.

The decline was driven by lower sales prices and volumes of polypropylene, along with an increase in the company’s loss share from its affiliate, in SK Advanced Co. Ltd., of SAR 11.5 million.

This was partially offset by a decrease in propane and outsourced propylene prices by 26% and 20.1% respectively, lower consumption of outsourced propylene by 31%, as well as decreased general and administrative expenses, and financial charges.

The company’s net profit after Zakat and tax for the second quarter declined 19.4% YoY to SAR 155 million due to a decline in polypropylene sales prices and higher consumption of outsourced propylene, despite an increase in polypropylene sales volumes.

On a quarter-on-quarter basis, the profit for the current quarter grew by 48.5%, which was attributed to higher polypropylene sales volumes and lower propane and outsourced propylene prices.