Page 11 - DMEA Week 27 2021

DMEA PETROCHEMICALS DMEA

Advanced reports record Q2 profits

SAUDI ARABIA SAUDI Arabia’s Advanced Petrochemical required feedstock for the plant in Jubail Indus-
Co. this week reported record profits in its Q2 trial City 2.
results driven by a significant increase in sales of The new unit will have a cracking capacity
polypropylene. of 1.15mn tonnes per year of ethylene, 850,000
In a filing on the Tadawul All Share Index, tpy of propylene and 400,000 tpy combined of
the Saudi stock exchange, the company’s net aromatics and fuels once it comes into operation
profit for the period was reported at SAR265mn in late 2025.
($70.6mn), an increase of 71% year on year. Advanced Petrochemical is expanding its
This coincided with a 72% hike in polypropyl- footprint at Jubail – the heart of Saudi Arabia’s
ene sales, with the chemical’s use increasing as petrochemical industry – and will kick off con-
demand has grown for packaging as more shop- struction work this year on a propane dehydro-
ping is carried out online. genation (PDH) unit and a polypropylene (PP)
Meanwhile, sales of petrochemical feedstocks plant.
have also been boosted by the meteoric rise in In December, the company said in a note to
demand for personal protection equipment. the Tadawul that the plants would have capacities
Growing demand has seen polypropylene of 843,000 tpy of propylene and 800,000 tpy of PP
prices increase by 53% y/y and 9% compared to respectively.
Q1 of this year. The firm’s 85%-owned Advanced Polyolefins
Earlier this year, one of Advanced’s subsidiar- Co. (APOC) subsidiary agreed an eight-year,
ies – Advanced Global Investment Co. (AGIC) $800mn loan with the Saudi International Devel-
– received approval from the Ministry of Energy opment Fund (SIDF) to part-fund the develop-
for the construction of a new plastics facility at ment of the units which will begin operations in
Jubail on the Kingdom’s Gulf coast. late 2024. Advanced’s stake in APOC is held by
In a March 10 Tadawul filing, the com- AGIC, with the remaining 15% held by South
pany said it had been permitted to allocate the Korea’s SK Gas Petrochemical.™

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