Khalifa Al-Mulhem, Chairman of Advanced Petrochemical Co. (APC), said the petrochemical sector is suffering currently, and the economic conditions impacted the performance of APC and its peers.
He added that the coincidence of scheduled maintenance activities for the company’s factories in Jubail and Korea deepened its loss, Al Arabiya TV reported.
He added that lower sales and selling prices as well as higher shipping costs by SAR 8 million contributed to the increase in APC losses.
The three-month loss is a starting point for the petrochemical producer, as its earnings are expected to improve in the coming quarters, the Chairman said. He indicated that APC is focusing on improving its production efficiency, which helps it generate earnings in the remaining quarters of the year.
The company did not witness an increase in financing costs, Al-Mulhem noted, expecting the potential interest rate cut next year to be positive for the company.
APC reported a loss of SAR 58 million in the first quarter of 2024, against a profit of SAR 43 million a year earlier, according to data available with Argaam.
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