‎Developed Q1 earnings weighed by 41% upward thrust in feedstock prices: Al-Mulhem


Khalifa Al-Mulhem, Chairman of Developed Petrochemical Co.

Khalifa Al-Mulhem, Chairman of Developed Petrochemical Co., stated that feedstock prices rose by 41% within the first quarter, while product prices did now not upward thrust by the same percentage, which weighed on profits of the three-month interval.


In a assertion to Argaam, the tip legit stated that the lengthen in shipping prices changed into once about 200% as a result of the shutdown in China and the buildup of containers in its ports, which led to a shortage of containers and a spike in prices globally.


SK Developed incurred losses of about SAR 12 million within the first quarter as a result of the lengthen in feedstock prices and unavailability of polypropylene product, compared to SAR 18 million earnings within the 300 and sixty five days-ago interval, stated Al-Mulhem.


He added that gross sales volume increased by 35% as a result of the absence of a scheduled shutdown of the company’s factories.


The prices of products at the tip of Q1 amounted to $1,440 per ton, compared to $1,250 per ton within the same quarter of excellent 300 and sixty five days, he famed.


The chairman also stated that the company’s total gross sales within the Turkish and European markets represented 60% of total gross sales, pushed by the excessive prices, while Pakistan accounted for 11%, internal the Kingdom 7%, Bangladesh 6%, while China accounted for a tiny percentage of total gross sales.


He explained that the capital lengthen came to pork up the company’s monetary assert and boost its capital flawed to again tempo with the expansions, including the recent manufacturing facility in Jubail, which requires the company to bear better monetary solvency.

This necessitated transferring section of retained earnings to capital, to boot to good the necessities of banks to finance these initiatives.


The tip legit stated that it’s challenging to foretell the anticipated efficiency in Q2 2022, as a result of the many changes and the shortcoming of clarity of imaginative and prescient referring to fuel and shipping prices, noting that that there might be infrequently an lengthen in feedstock prices.


Developed earlier posted a 4% decline in gain earnings to SAR 164 million for Q1 2022, compared to SAR 171 million within the same interval a 300 and sixty five days earlier.