Advanced offsets output decline by offloading stockpiles: chairman

Advanced Petrochemical Co. (Advanced) has offset a decline in production due to the feedstock supplies shortage through offloading inventories to fulfil market demand, chairman Khalifa Al Mulhem told Al Arabiya TV.

“We can meet the requirements of our clients until the end of September, as feedstock supplies shortage, which is equal to the decline in output, stood at 20 percent,” he said.

Al Mulhem, however, stated that the relevant financial impact cannot be defined at present.

Advanced expected feedstock supplies to reach normal levels by the end of September, as the shortage in feedstock supplies dropped from 40 percent to 20 percent.

The US-China trade war weighed on the prices of the products exported to China, Al Mulhem disclosed, adding that the company directed its exports to other markets for better prices.

“Prices are currently down by $10 to $20,” said Al Mulhem, expecting the decline to have no impact on the company’s financials.

When asked about the capital top-up, the chairman indicated that the capital increase will be used for the development of propane and polypropylene project in Jubail Industrial City. 

The project has a production capacity of 750,000 tons per annum for each plant, at a total cost of $1.8 billion.