Advanced Petrochemical posted a net loss for H1 2026 after a propane supply crunch in April and May cut production by 27% and sales volumes by 12%. Supply returned to normal in June.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Advanced Petrochemical Company swung to a net loss of SAR 87 million in the first half of 2026, compared with a profit of SAR 112 million a year earlier. Revenue rose 45% to SAR 2.1 billion, helped by higher netback prices and the ramp-up of its Advanced Polyolefins Industry Company subsidiary.
The loss reflected a propane supply disruption in April and May that cut production volumes by 27% in the first half and 46% in the second quarter. Sales volumes fell 12% in the half and 46% in Q2. Propane and propylene purchase prices rose 46% and 15% respectively, the company said, compressing margins.
The new polyolefins plant added depreciation, fixed costs and financial charges that were absent in the year-ago period. Advanced Petrochemical said propane supply and production returned to normal levels starting in June. Read more on commodity supply dynamics in commodities analysis.
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