Listen to the article. The audio text is auto-generated by an automated system.

0:00

2 minutes to read

Al-Mutakadimmah for Petrochemicals (Al-Mutakadimmah) incurred losses of SAR 98 million in the second quarter of 2026, compared to profits of SAR 82 million in the same quarter of 2025.

On a quarterly basis, Al-Mutakadimmah turned to losses in Q2 2026 compared to profits of SAR 30 million in Q1 2026.

The company said in a statement on the Saudi Stock Exchange (Tadawul) on Sunday that revenues for Q2 2026 grew by approximately 18.5% to SAR 827 million, compared to SAR 698 million in the same quarter last year, due to a 34% increase in net selling prices.

It noted that revenues rose despite a 12% decline in sales volumes due to a 27% drop in production volumes, resulting from lower propane supplies during April and May 2026.

It attributed its quarterly losses to a 40% and 21% increase in the prices of purchased propane and propylene, respectively, as well as the recording of depreciation expenses, fixed costs, and financing costs in the income statement following the start of operations of the Al-Mutakadimmah for Polyolefins Industry in Q3 2025. These expenses were not recorded in Q2 of last year.

First-half results

In the first half of the current year, the company recorded losses of SAR 69 million, compared to profits of SAR 153 million in the same period of 2025.

It explained that the losses in the first half of the current year are due to a 23% decline in net revenues and a 46% and 15% increase in the prices of purchased propane and propylene, respectively.

The company also noted that the net loss for Q2 2026 was affected by a one-time non-cash increase in depreciation expense of approximately SAR 20 million, resulting from the early execution of part of the scheduled periodic maintenance work for 2027 during the period of low propane supplies in April and May 2026. It expects this to enhance operational efficiency and support the expected increase in production volumes in the coming periods.

It also reported that propane supplies and production volumes have started to return to normal levels as of June 2026.

Ad material

Ad material

Read also

A stunning turnaround to profitability drives "Al-Mutakadimmah for Petrochemicals" stock up; the stock rose by 5.20%. Capital Markets

"Al-Mutakadimmah for Petrochemicals" turns to profitability with SAR 226 million in 2025 due to higher revenues and lower prices for purchased propane and propylene. Companies

Stock of "Al-Mutakadimmah for Petrochemicals" records the largest decline in 12 weeks, reaching its lowest level since September 22 last year. Capital Markets