Business · Companies · 6 hrs ago
Advanced Petrochemical expects improved fourth-quarter performance
Advanced Petrochemical, a Saudi petrochemical company, expects factors including stable production and improved logistics to support its results in the fourth quarter.
Its chief executive, Mamdouh Al-Omari, said production returned to normal levels in the third quarter after propane supplies stabilized.
Earlier, the company said its net revenue fell 4%, mainly because sales volumes dropped 20% amid logistical problems linked to geopolitical conditions.
Higher average selling prices were not enough to offset lower sales volumes and an 8% rise in propane prices.
The company also recorded depreciation, fixed costs and financing expenses over three months, compared with two and a half months in the same quarter a year earlier.
Al-Omari expects fourth-quarter production to be close to the third-quarter level, while sales may exceed production because the company has stock left over from the previous quarter.
The outlook depends on logistics, operations and profit margins remaining stable, while future raw material and product prices are difficult to predict.
Advanced Petrochemical expects its fourth-quarter performance to improve if production, logistics and profit margins remain stable.
Chief Executive Mamdouh Al-Omari expects fourth-quarter production to be close to third-quarter levels, with sales likely to exceed production.
He said normal operating rates resumed in the third quarter after propane flows stabilized.
Logistics conditions and profit margins improved in September after disruptions affected markets in July and August.
The company previously attributed lower net revenue mainly to a 20% fall in sales volumes, despite a 12% rise in production.
- Who
- Advanced Petrochemical, whose chief executive is Mamdouh Al-Omari.
- What
- The company expects improved fourth-quarter performance, supported by stable operations, better logistics and profit margins.
- When
- The outlook is for the fourth quarter of 2026.
- Where
- The company’s markets; the article does not name specific locations.
- Why
- Production returned to normal rates after propane flows stabilized, while logistics and profit margins improved. Sales may exceed production, supported by inventory from the previous quarter.
This story does not have two clearly opposing sides.
The stability of production operations and the improvement in logistical conditions and profit margins are factors supporting the company’s performance during the fourth quarter.
I expect production volumes during the fourth quarter to be close to the levels of the third quarter.
It is difficult to predict the direction of prices amid the current geopolitical conditions.
Logistics challenges affected most of the markets where the company operates.
The company returned to normal operating rates after propane flows stabilized.
Logistics conditions and profit margins improved.
The company expects production to be close to third-quarter levels and sales to exceed production.
- Production volumes
- Rose 12% year on year in the comparable quarter
- Sales volumes
- Fell 20%
- Net revenue
- Fell 4%
- Average net selling prices
- Rose 20%
- Propane prices
- Rose 8%
- September sales
- About 75% of total third-quarter sales volume
Sources
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