Saudi Arabia-based Advanced Petrochemical Company reported that its net profit fell in the second quarter of 2020 mostly due to a drop in polypropylene (PP) prices. Advanced Petrochemical’s net profit decreased to SAR154.95 million ($41.3 million) in the period, 19.43% lower than SAR192.31 million in the same quarter last year.
The decline in the interim earnings was mainly attributed to a 26.7% drop PP sales prices and a 19.9% increase in intake of outsourced propylene, according to the company’s filing with the bourse. Net profit dropped despite a 4% increase in PP sales volume and the decrease in propane and outsourced propylene prices by 45.7% and 24.9% respectively.
The company also reported a 20.2% drop in general and administrative expenses as well as a 93.5% decline in financial charges. Additionally, revenue decreased by 23.8% to SAR519.03 million ($138.3 million) in the period from SAR680.96 million a year earlier.
