Yansab’s Q2 profit lifted by significant rise in product prices: Chairman

Abdulrahman Shamsaddin, Chairman of Yanbu National Petrochemical Co.

Yanbu National Petrochemical Co.’s (Yansab) Q2 2021 net profit was bolstered by the significant improvement in product prices, as the average selling prices of all products increased compared to Q2 2020, Chairman, Abdulrahman Shamsaddin, told Argaam in a telephone interview.

The rise in product prices came in line with a recovery in global markets, compared to the second quarter of 2020, when the prices of many petrochemicals saw a significant surge of over 100%.

Moreover, the strong rise in oil prices year-on-year was accompanied by a hike in propane prices, while ethane remained unchanged, Shamsaddin said, noting that Yansab is continuing its efforts to enhance production efficiency, plant reliability and cost control.

Yansab reported solid performance despite global market challenges, Shamsaddin added, expecting the company to maintain its planned performance, improve its operations and enhance operational efficiency and reliability.

He also expected Yansab to continue providing its clients with products and meet client demand, control costs, maintain a strong balance sheet and sustain the best performance levels with respect to environment, safety, health, security, quality and sustainability.

The petrochemicals sector is witnessing cycles of inflation and deflation, in line with global economic changes, which, in turn, lead to fluctuations in supply and demand for petrochemical products. The company cannot accurately predict these economic cycles and trends, or the periods of such cycles.

Yansab is working in light of its strategies that focus on studying potential investments and future expansions, including the opportunities available under Vision 2030, based on its capital structure.

The company will announce any investment decision, when the relevant feasibility studies are completed and approved by the board of directors, Shamsaddin concluded.

Yansab reported net profit after Zakat and tax of SAR 596.3 million for Q2 2021.