Positive sector indicators fuel product price growth: Yansab CEO

Wazen Al-Solami, CEO of Yanbu National Petrochemical Co. (Yansab)

The rise in product prices was supported by positive indicators in the petrochemical industry, including improvements in the purchasing managers' index (PMI) and a slight easing of monetary policy, Wazen Al-Solami, CEO of Yanbu National Petrochemical Co. (Yansab), told Argaam.

During an analysts' meeting, Al-Solami noted that global prices for monoethylene glycol (MEG) remained relatively stable in Q2 due to increased supply and steady demand, resulting in no significant changes.

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He added that polyethylene prices saw a slight global increase due to higher costs and logistical issues compounded by supply shortages. Similarly, polypropylene prices rose globally for the same reasons, reflecting an overall improvement in these product prices.

Commenting on Q2 results, the CEO mentioned that the results exceeded analysts' average expectations by 100%, with forecasts at SAR 110 million, reflecting efforts to enhance shareholder value.

Sales volume increased by 7% in Q2 2024, compared to Q1 2024, and by 40% year-on-year (YoY), indicating improved operational efficiency.

The company's growth strategy focuses on expanding the production capacity of its main products, improving performance and sustainability, and capitalizing on investment opportunities in the petrochemical industry.

Yansab continues to explore new operations and investment opportunities to bolster profitability alongside its long-term strategy.

Meanwhile, CFO Mohamed Qandeel reported that cash flows from operations reached SAR 335 million in Q2, representing a 450% improvement compared to Q1, which helped maintain a healthy financial position.

Revenue for Q2 increased by 25% compared to the previous quarter, supported by higher average sales prices and increased sales volume, Qandeel added.

According to data available on Argaam, Yansab recorded a net profit of SAR 324 million by the end of H1 2024, compared to a loss of SAR 342.3 million in the same period of 2023, with Q2 profits at SAR 224.8 million.