Mamdouh Al-Omari CEO of the corporate Superior Petrochemicals
expectation Mamdouh Al-OmariCEO of the corporate Superior PetrochemicalsThe corporate will witness a rise in gross sales portions throughout the fourth quarter of 2025, in comparison with the third quarter, after reaching the design capability of the 2 polypropylene manufacturing strains final September, indicating that the extent of profitability will depend upon the development in revenue margins linked to the motion of provide and demand in international markets.
Al-Omari added in his statements to: numbersThe corporate observed a decline in gross sales costs throughout the starting of this October, explaining that the worldwide petrochemical sector faces a number of challenges represented by elevated provide from China, excessive financing prices, and geopolitical fluctuations.
Commenting on the outcomes Third quarterwhich confirmed a rise in Superior income to 72 million riyals in comparison with 46 million riyals achieved within the third quarter of 2024. Al-Omari mentioned that the principle causes are as a result of improve in gross sales portions by 82%, on account of the beginning of operation of the 2 polypropylene manufacturing strains of the Superior Polyolefins Firm within the third quarter of 2025, along with the lower within the costs of propane and bought propylene by 23% and 9%, respectively. The corporate additionally didn’t file any share of funding losses in SK Superior within the third quarter of 2025, on account of recording an allowance for impairment of the funding in SK Superior throughout the previous 12 months.
The rise in revenues by 58% throughout the third quarter is principally on account of a rise in gross sales portions by 82%, on account of the beginning of operation of two polypropylene manufacturing strains for the Superior Polyolefins Firm within the third quarter of 2025, regardless of a lower in internet gross sales costs by 14%.
Relating to the monetary influence of working the 2 polypropylene manufacturing strains within the Superior Venture, the corporate’s president defined that the monetary influence of the operation was optimistic, because it contributed to a rise in gross sales portions by 82% in comparison with the identical quarter of the earlier 12 months and 54% in comparison with the earlier quarter. We search throughout the coming interval to work to stabilize the factories and lift reliability and working effectivity.
He identified that the latest discount in US rates of interest might contribute to stimulating international demand and enhancing working margins, anticipating revenue margins throughout 2026 to be near 2025 ranges.
He defined that the worldwide demand for petrochemical merchandise throughout the third quarter of 2025 didn’t have a major influence on gross sales portions, nevertheless it had a destructive influence on promoting costs, which declined by 14% on an annual foundation and 5% in comparison with the earlier quarter.
He added that the European, Turkish and African markets have been probably the most secure by way of returns, as a part of the corporate’s advertising technique that focuses on the markets with the best profitability.
