Saudi Arabia’s Advanced Petrochemical Company reported on Thursday a 37 percent increase in annual net profit for 2021 on the back of high polypropylene prices. 

Net profit for the year ended December 31, 2021 reached 815.4 million riyals ($217.3 million), up by 36.9 percent from 592.45 million riyals in the same period in 2020, the Saudi polypropylene maker said in a disclosure to the Saudi Stock Exchange (Tadawul). 

Advanced Petrochemical attributed the significant increase to higher sales prices of polypropylene, which jumped by more than 50 percent last year. Polypropylene is used in several applications, including packaging of consumer products and plastic parts. 

Sales/revenue for the year reached a total of 3.1 billion riyals, compared to 2.2 billion riyals in 2020. 

“Net profit increased mainly due to the increase in polypropylene sales prices by 51 percent,” the company said. 

Advanced Petrochemical managed to increase its earnings despite a seven percent decline in sales volume, which was caused by the periodic scheduled maintenance taken last year.  

Other outgoings also went up, including the company’s general/administrative expenses, financial charges and offshore logistics costs. 

(Writing by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@lseg.com 

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