Advanced Petrochemical posted a SAR 98M Q2 loss after propane costs surged 40% and production dropped 27%. H1 loss SAR 69M. Revenue rose 18%.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
Advanced Petrochemical Company posted a preliminary net loss of SAR 98 million in the second quarter of 2026, reversing a profit of SAR 82 million a year earlier, according to its financial results.
Revenue rose 18.48% to SAR 827 million, driven by a 34% increase in average sales prices. The top-line growth was offset by a 27% decline in production volumes during April and May, caused by reduced propane feedstock supplies.
The bottom line took additional hits from a 40% surge in propane prices and a 21% increase in outsourced propylene costs. The company also recorded SAR 20 million in one-time non-cash depreciation expenses after accelerating scheduled maintenance to align with the supply disruptions.
For the first half of 2026, the net loss reached SAR 69 million against a profit of SAR 153 million in the same period last year. Revenue jumped 45.16% to SAR 1.91 billion. In the first quarter, net profit fell 58.33% year-on-year to SAR 30 million.
Management said propane supplies and production rates returned to normal in June, with facilities running at full capacity. The normalization ends a period of reduced output that weighed on earnings through the first five months of the year.
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