Estimated Q2'19 net profit at Saudi's Advanced Petrochemical drops 24%
Reduced net profits attributed to drop in sales volume and increased consumption of outsourced propylene
Saudi Arabia’s Tadawul-listed Advanced Petrochemical has announced that its net profits for the second quarter of 2019 declined by 24.2%, reaching $51.2m (SAR192m) during the period, from $67.6m (SAR 253.3m) in Q2 2018.
In a stock market filing, the company attributed the plunge in net profits to “reduction in sales volume by 2.8%”.
The company said the increased consumption of outsourced propylene, and a reduction in its profit share from investments by South Korea-based SK Advanced Co – despite decreased propane and outsourced propylene prices – contributed to its net profit decline during Q2.
However, Advanced Petrochemical’s net profits for H1 2019 witnessed an upward trend, reaching $94.4m (SAR354m) from $93.6m (SAR350.9m) in H1 2018.
In the stock market statement, the firm said the 0.9% growth was driven by a 14.4% hike in sales volumes during H1 2019, and reduced propane and outsourced propylene prices.
These estimated financials were prepared by Advanced Petrochemical’s management and have not been reviewed by external auditors.