Advanced Petrochemical Company (Tadawul: 2330) held its 21st Ordinary General Assembly Meeting on the evening of Tuesday, May 5, 2026, via virtual broadcast. Shareholders approved all agenda items as previously disclosed on the Saudi Exchange (Tadawul), covering key operational, strategic, and governance decisions that outline the company’s direction for the coming phase.
During the meeting, the executive management and Board of Directors reaffirmed that the company’s priorities for the next phase center on stabilizing operations, improving plant reliability, and increasing the share of higher-margin products—particularly from the new project. The company also emphasized cost optimization to strengthen operating cash flows, which will be directed toward debt reduction and lowering financing costs, ultimately improving profitability. This will pave the way for reconsidering dividend distributions once market conditions stabilize, alongside evaluating potential investment opportunities aimed at enhancing shareholder value.
On the operational front, the company reported that its Jubail APOC complex exceeded the nameplate capacity for both propylene and polypropylene plants during the first quarter of 2026. Currently, plant utilization is aligned with available feedstock supply, given ongoing market-related challenges previously announced by the Ministry of Energy on April 9. In light of these conditions, the company has advanced certain scheduled maintenance activities at its Jubail APPC facilities to shorten the planned turnaround duration in 2027. The plant is expected to be ready for operation during the second week of May 2026.
Regarding financial performance during the period of regional tensions, the company highlighted an approximate increase of 50% in feedstock costs and 400% in freight costs. However, these increases were accompanied by a rise in selling prices exceeding 50%, which helped offset cost pressures and led to an approximate 30% improvement in margins. The company clarified that the price increase was driven primarily by supply chain disruptions rather than demand growth.
Advanced Petrochemical reported a net profit of SAR 30 million for the first quarter of 2026, despite weak margins in January and February, supported by flexible marketing strategies and optimized sales volumes in March. The company cautioned that current challenges may impact second-quarter sales; however, improved margins are expected to partially mitigate this impact. It also confirmed that certain shipments have been rescheduled in coordination with customers.
Looking ahead, the company noted the difficulty of providing full-year forecasts amid ongoing volatility, emphasizing that greater visibility will depend on the stabilization and improvement of geopolitical conditions in the region.
The company also highlighted its strategic focus on expanding its portfolio of high‑ premiumspecialized polypropylene products, which are expected to deliver additional margin improvements. Initial production is anticipated to commence in 2026, with gradual scaling based on market demand and the availability of required feedstock.
In terms of investments, the company stated that its decision to exit SK Advanced through a share swap transaction reflects the Board and management’s confidence in the new project’s ability to generate superior returns for shareholders. The company noted that its investment in SK Advanced was profitable until mid-2021, before margins were adversely affected by expansions in the Chinese petrochemical sector, leading to subsequent losses and the recognition of an impairment provision at the end of 2024.
The company also confirmed that the Isopropanol (IPA) project remains on schedule, with trial operations expected to commence in the first half of 2027. Other expansion projects continue to be evaluated pending improvement in financial indicators, in line with the company’s stated priorities.
At the conclusion of the meeting, the Chairman of the Assembly emphasized that the company is entering a critical phase of strategic transformation, expressing confidence in its ability to navigate current challenges and convert them into opportunities for sustainable growth.
Disclaimer
This statement contains forward-looking statements based on current management expectations and available data. Actual results may differ due to factors beyond the company’s control. For further details, please refer to official disclosures published on the Saudi Exchange (Tadawul).