ADVANCED PETROCHEMICAL COMPANY ANNOUNCES ITS ESTIMATED FINANCIAL RESULTS FOR THE PERIOD ENDED ON 30 JUNE 2026 (SIX MONTHS)

Advanced Petrochemical reported an estimated net loss of SAR 98 million for Q2 2026, reversing a net profit of SAR 82 million in the prior-year period, despite revenue growing 18.5% year-on-year to SAR 827 million.
The quarterly performance was severely impacted by a propane supply shortage in April and May 2026, which led to a 57% drop in production and a 46% decline in sales volumes compared to Q1 2026.
Results were further pressured by a SAR 20 million non-cash depreciation charge related to the acceleration of 2027 maintenance activities, as well as significantly higher feedstock costs, with propane and propylene purchase prices rising 46% and 15% respectively on a quarter-on-quarter basis.
Management noted that propane supply and production capacity normalized in June 2026, and the company has begun producing specialty copolymer grades to target higher-netback markets like Europe while considering a future resumption of dividend distributions.

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	827	698	18.481	1,079	-23.354
Gross Profit (Loss)	73	134	-45.522	178	-58.988
Operational Profit (Loss)	17	92	-81.521	124	-86.29
Net Profit (Loss) Attributable to Shareholders of the Issuer	-98	82	-	30	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	-105	91	-	130	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	1,906	1,313	45.163
Gross Profit (Loss)	251	241	4.149
Operational Profit (Loss)	141	166	-15.06
Net Profit (Loss) Attributable to Shareholders of the Issuer	-69	153	-
Total Comprehensive Income Attributable to Shareholders of the Issuer	25	132	-81.06
Total Shareholders Equity (after Deducting Minority Equity)	2,889	3,006	-3.892
Profit (Loss) per Share	-0.264	0.593
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
Accumulated Losses	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	The reasons of the increase in the net revenues are mainly due to the following: Increase in the netback prices by 34%. The revenues increased despite the decrease in sales volume by 12% due to lower production volume by 27% resulting from lower Propane supply in April and May 2026.
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	The reasons for net loss in Q2 2026 are mainly due to the following: Increase in propane and propylene purchase prices by 40% and 21% respectively. Recording of the depreciation, fixed costs and financial charges in the income statement after the commencement of commercial operations of Advanced Polyolefins Industry Company in Q3 2025 (no such costs were charged in Q2 2025). The net loss recorded despite the increase in net revenues by 18%.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	The reasons of the decrease in the net revenues are mainly due to the following: Decrease in the sales volume by 46% mainly due to lower production volume by 57% resulting from lower Propane supply in April and May 2026. The net revenues decreased despite the increase in netback prices by 42%.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	The reasons for net loss in Q2 2026 compared to net profit in Q1 2026 are mainly due to the following: Decrease in net revenues by 23%. Increase in Propane and Propylene purchase prices by 46% and 15% respectively.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	The reasons of the increase in the net revenues are mainly due to the following: Increase in the sales volume by 37% due to commencement of operations of Advanced Polyolefins Industry Company in H2 2025 in addition to increase in netback prices by 6%. The revenues increased despite the production loss during the Q2 2026 due to lower Propane supply in April and May 2026.
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The reasons for net loss during the period are mainly due to the following: Recording of the depreciation, fixed costs and financial charges in the income statement after the commencement of commercial operations of Advanced Polyolefins Industry Company in H2 2025 (no such costs were charged to income statements in H1 2025). The net loss recorded despite the increase in net revenues by 45%.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	These estimated financial results for the period ended on June 30, 2026, have been prepared by the company's management and have not been audited or reviewed by its external auditor.
Reclassification of Comparison Items	None
Additional Information	The net loss for Q2 2026 were also impacted by an increase in one-time non-cash amortization expense of approximately SR 20 million, resulting from the advancement of part of the scheduled periodic maintenance activities for 2027 during the shortage of Propane in April and May 2026. This will help to enhance operational efficiency and supporting the expected increase in production volumes in upcoming periods. It is important to highlight that supply of Propane and production volumes are back to normal levels commencing June 2026 .
Attached Documents	Attached Documents