DUBAI: Saudi petrochemical companies got first-quarter earnings season underway on Tuesday with signs of improving demand after a tough year for the sector.
Jubail-based Advanced Petrochemicals Company reported a 64 percent jump in first quarter profits to SR171 million ($45.5 million) driven by higher sales of polypropylene, a plastic used widely in the packaging industry.
Polypropylene sales surged by 36 percent in the first quarter compared to a year earlier, it said in a statement to the Saudi stock exchange.
Global demand for packaging has skyrocketed during the pandemic according to research from P&S Intelligence as more people order goods online. It estimates the global e-commerce packaging to expand at an annual compound growth rate of 12.1 percent between 2020 and 2030 to reach $68.4 billion.
Meanwhile Methanol Chemicals Co. reported a rise in first quarter sales. It said revenues jumped by almost 62 percent over the period to SR194.8 million. Net profit was SR29.9 million. An increase in average selling prices along with higher sales and lower finance costs, helped to boost earnings it said.
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