Riyadh, Saudi Arabia — Advanced Petrochemical Company reported a 95.23% surge in net profit for Q2 2025, reaching SAR 82 million. This marks a sharp rise from SAR 42 million in Q2 2024. On a quarterly basis, profit also grew 13.88% from SAR 72 million in Q1 2025.

Advanced Petrochemical Q2 Profit 2025 Boosted by Revenue and Volume Growth

The company’s revenue for the second quarter rose 7.55% year-on-year to SAR 698 million, up from SAR 649 million. This increase was mainly due to a 20% jump in sales volume after Advanced launched a new polypropylene production line. While average selling prices fell by 10%, higher output volumes helped sustain top-line growth.

Lower feedstock costs also played a major role. Propane prices dropped 8% year-on-year, while propylene fell 18%, easing pressure on input expenses and lifting margins.

Q2 Earnings Benefit from Absence of Investment Losses

Unlike Q2 2024, when Advanced posted SAR 33 million in losses from its SK Advanced investment, no such losses occurred this quarter. This clean investment result further lifted the company’s net earnings and strengthened overall performance.

H1 2025: Strong Turnaround in Financial Results

For the first half of 2025, Advanced posted a net profit of SAR 153 million. This reverses a net loss of SAR 17 million during the same period last year. Revenue rose 35% to SAR 1.31 billion, supported by sustained growth in product volumes and lower feedstock costs—propane down 2% and propylene down 7%.

Importantly, the company reported no impairment charges in H1 2025. This contrasts with SAR 67 million losses from SK Advanced in H1 2024. Improved efficiency, stronger utilization, and better market conditions helped drive this recovery in the Saudi petrochemical sector.

 

 

The Saudi Standard’s View: Advanced Petrochemical’s Q2 Surge Validates Industrial Efficiency and Market Agility

Advanced Petrochemical’s 95.2% rise in Q2 2025 profit—reaching SAR 82 million—shows how well the company manages cost pressures and expands capacity. As Saudi Arabia pushes forward with industrial diversification, these results highlight the petrochemical sector’s growing strength.

Production Gains Driven by New Capacity

The 20% increase in sales volume, fueled by the new polypropylene line, shows Advanced is aligning output with demand. Despite falling selling prices, revenue rose 7.55%—a sign of effective asset use and market timing.

Feedstock Savings Translate into Profit Growth

Falling propane and propylene prices—down 8% and 18%—helped widen profit margins. Advanced used this cost advantage well, showing how efficient operations can offset price drops in global chemicals.

Q2 2025 Shows Lasting Strength, Not Just a Rebound

This quarter, the company avoided the investment losses and impairment charges that hit results in 2024. Strong production and sales and a clean balance sheet suggest real structural gains, not just a lucky break.

H1 Recovery Reflects Sector Discipline and Resilience

Advanced reported a profit of SAR 153 million in H1 2025, compared to a loss of SAR 17 million last year. This shift shows company-level discipline and a stronger industrial base across Saudi Arabia. Vision 2030’s push for non-oil growth and smarter energy use is making an impact.

In summary, Advanced Petrochemical’s Q2 performance is more than a rebound. It proves that Saudi industry can combine efficiency, innovation, and infrastructure to build long-term value in global chemicals.

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