Saudi Arabia's Advanced Petrochemicals Co posted a net profit of 45 million Saudi riyals ($12 million) in Q3 2023, 67% higher year-on-year (YoY), due to a drop in the price of feedstock and higher sales volumes, which offset lower sales prices.

The effort, however, missed the analysts’ mean estimate of SAR 59.41 million, according to LSEG data.

In a regulatory filing on Riyadh's Tadawul bourse, the petrochemicals maker said sales revenue for the quarter came in at SAR 594 million, which was nearly 10% lower YoY.

Saudi petrochemical producers are seeing a squeeze on margins due to weaker global demand and lower product prices, despite lower prices for some feedstock.

Advanced said prices for its feedstock--propane and propylene--fell by 32% and 14% respectively, which supported the bottom-line. A 13% drop in freight expenses also drove the net profit higher.

The company said it recognised SAR 32 million of share of loss in SK Advanced investment during the current quarter compared to share of loss of SAR 30 million during the same quarter of the previous year.    

(Reporting by Brinda Darasha; editing by Seban Scaria)