Petrochemical News

According to Mr. Mohammad Sadegh Omidvar, with the publication of the 6-month financial statements of Bu Ali Sina Petrochemical Company, it became clear that Bu Ali Sina Company in the first 6 months of this year faced an 181% increase in operating income compared to the previous year same date, and the total gross profit of this petrochemical company has increased by 381%.

Regarding the history of Bu Ali Sina Petrochemical Company, it should be said that this company was established in April 1998 as a public joint stock company, then it was admitted to the stock exchange in 2020 and its shares were offered.

The most important advantages and privileges of this company are geographical location, environmental exemptions, easy access to food resources, access to international open waters and the demand for the company’s products in the market. The capital of Bu Ali Sina Petrochemical Company at the time of its establishment until the end of 2017 was 500 billion Rials, which in 2018 this amount increased to 3,500 billion Rials.

Bu Ali Sina’s 381% increase in gross profit

According to the published financial statements, the operating income of Bu Ali Sina Petrochemical Company in the period of 6 months ending in September of this year was 101959 billion Rials, which compared to the same period of the previous year has increased (36285 billion Rials ) 181 %. Of this amount, 42 529 billion Rials is related to the domestic sales of this company, which is obtained from selling the aromatic mixture, heavy cut, middle oil cut, reformit, liquid gasoline, gasoline, and Rafinite, and among the mentioned cases, gasoline with 7818 billion Rials allocated the most amount of sales and gross profit which is 3,730 billion rials from the domestic market of this company. Also, the amount of export sales of this company in the first 6 months of this year was 59,430 billion rials, which is gained from the sale of refined benzene, Sangpin, Rafinite and the oil middle cut has been achieved and among these, Reformit items with sales of 3772 billion Rials and gross profit of 7734 billion Rials, has the largest share in the export sales of this country.

For the second half of this year, Bu Ali Sina Petrochemical estimated an increase of 47.8% for domestic sales, an increase of 82.2% for foreign sales, and finally an increase of about 70% in its revenues from domestic and foreign sales. The company attributes the increase because of changes in the price of crude oil and petroleum products, as well as exchange fluctuation rate, and states that the company’s management is determined to improve the company’s position through various markets planning for products.

The cost of operating revenues of the company in this period was 79727 billion rials, which compared to the same period last year,( 31665 billion rials )has increased by 152 %. Among the factors affecting the cost of operating income direct consumables materials has the largest share. A noteworthy point is the forecast of an 82% increase in the cost of the company’s operating income in the second half of this year compared to the first six months. The reasons for this increase are the changes in cost factors comparing the increase in the purchase price of raw materials and annual inflation. The company’s gross profit in the first six months of current year reached 22232 billion rials, which is an increase of 381 %compared to the same period last year.

Another point to note is the 661% increase in other operating expenses of the company in the first 6 months of this year compared to the same period last year, a significant part of which was due to losses in operating foreign exchange assets and adjustment of the monolithic rate. Also, the other income of this company in the period of 6 months of this year was equal to 6111 billion Rials, which has increased by 929 % compared to the same period of last year, and more than half of this amount was related to interest on bank deposits. It should be noted, however, that the company has forecast a 73.5% reduction in other operating expenses for the second half of this year. According to the above, the company’s net profit in the first 6 months of the year reached 19197 billion rials, which is an increase of 154 % compared to the same period last year.