Advanced Petrochemical Posts SAR 69M Net Loss in H1 2026
Advanced Petrochemical Company (2330) posted a net loss of SAR 69 million for the first half of 2026, versus a net profit of SAR 153 million in the same period last year, despite a 45.2% revenue surge to SAR 1.906 billion. The swing to loss was primarily due to the commencement of commercial operations of Advanced Polyolefins Industry Company in H2 2025, which brought depreciation, fixed costs, and financial charges, along with a one-time non-cash amortization expense.
Key Numbers
Advanced Petrochemical Company (2330) announced its interim financial results for the six months ended June 30, 2026, reporting a net loss of SAR 69 million compared to a net profit of SAR 153 million in the same period of 2025. Revenue rose 45.2% year-on-year to SAR 1.906 billion, driven by a 37% increase in sales volume following the start of commercial operations of Advanced Polyolefins Industry Company in H2 2025, combined with a 6% rise in netback prices.
Key Financial Results
| Item | H1 2026 | H1 2025 | Change |
|---|---|---|---|
| Revenue | SAR 1.906 billion | SAR 1.313 billion | +45.2% |
| Net Profit (Loss) | (SAR 69 million) | SAR 153 million | - |
| EPS | Not disclosed | Not disclosed | - |
Highlights from the Statement
The company attributed the loss to several factors:
- Commencement of commercial operations of Advanced Polyolefins in H2 2025, leading to depreciation, fixed costs, and financial charges not present in H1 2025.
- A one-time non-cash amortization expense of approximately SAR 20 million related to advancing scheduled maintenance originally planned for 2027, carried out during the propane shortage.
- A 46% sequential decline in sales volume in Q2 2026 due to a 57% drop in production volume caused by lower propane supply in April and May 2026.
- Sharp increases in propane and propylene purchase prices of 46% and 15%, respectively, in Q2.
Guidance
The company did not provide specific forward guidance.
Impact on the Stock
The reported loss may weigh on investor sentiment in the near term, especially given ongoing propane supply challenges. However, the ramp-up of Advanced Polyolefins operations is a long-term growth catalyst.
What This Means for Investors
The results indicate a transitional phase for the company, as capacity expansion through Advanced Polyolefins incurs upfront costs before full benefits materialize. The propane supply disruption is a temporary operational hurdle. Investors should monitor raw material supply developments and stabilization of new operations.
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