Advanced Petrochemical swings to nine-month loss despite higher sales

Advanced Petrochemical, a Saudi producer of polypropylene—the plastic used in packaging and other goods—reported a preliminary net loss of SAR 65 million ($17.3 million) for the first nine months of 2026, reversing a SAR 225 million profit a year earlier. The apparent paradox is that revenue rose 24% to SAR 2.88 billion, helped by sales from a new Jubail complex that began commercial production in mid-2025. But the expansion also brought depreciation, fixed operating costs, and finance charges onto the income statement, while higher propane and purchased propylene prices squeezed margins; reduced propane supply in the second quarter also interrupted output. The third quarter returned to a SAR 4 million profit after a SAR 98 million loss in the prior quarter, though logistics disruptions delayed some shipments whose revenue is expected to be recognized in the fourth quarter.