A 35 percent net profit decline posted by Advanced Petrochemical Company (Advanced). As disruptions caused by the coronavirus pandemic put a damper on global demand, demand for polypropylene has declined recently.
The sales volume of polypropylene fell by 8 percent during Q1 2020, while prices dropped 10.3 percent. Along with other factors, the decline has impacted Advanced’s net profit for the quarter. Compared to the same period in 2019, net profit dropped by 35.6 percent to 104.3 million Saudi riyals ($27 million).
Overall, Advanced’s sales/revenues plunged 17.5 percent year-on-year to 534.52 Saudi riyals. The demand is expected to decline by 2.1 million tonnes for polypropylene this year.
Polypropylene is used in several applications, including packaging for consumer items, plastic parts in the automotive industries, and other special devices.
