Saudi Arabia’s petrochemicals sector suffered significant disruption last quarter as a result of the Middle East conflict. The closure of the Strait of Hormuz created substantial logistical headwinds, with the kingdom’s array of companies having to reduce operations and find alternative routes to market (MEES, 3 April). Iranian attacks also caused temporary feedstock disruptions, and Advanced Petrochemical announced this week that its Jubail facilities suffered from a lack of propane availability last quarter.
In Tadawul filings this week, Advanced reported a $28mn loss in Q2, its first loss since the final quarter of 2024 (MEES, 28 March 2025). It cites lower propane supply in April and May as the key driver of this, with sales volumes and production down 46% and 57% on the previous quarter as a result. At the same time, propane and propylene purchase prices increased by 46% and 15% respectively, putting more pressure on the company’s bottom line. (CONTINUED - 463 WORDS)
