Petchem demand stable, likely to improve on US-China deal: Tasnee CEO

Fawaz Al-Fawaz, CEO of National Industrialization Co. (Tasnee)

Demand for petrochemical products is stable, CEO of National Industrialization Co. (Tasnee) Fawaz Al Fawaz said, expecting a gradual recovery in the second half of 2025, supported by potential easing of US-China trade tensions related to tariffs.

In an interview with Argaam, Al Fawaz noted that average selling prices are difficult to determine due to the variety of Tasnee’s products and price differences across sectors.

Q1 2025 revenue rose, boosted by the consolidation of Saudi Acrylic Monomer Co. (SAMCO) and higher volumes of certain products versus Q1 2024. However, operating income declined due to lower average selling prices, rising feedstock and operating costs, reduced contributions from joint ventures, and higher losses from Tronox Limited BLC Co. amid a site restructuring in the Netherlands.

Al Fawaz confirmed the completion of loan and ownership restructuring for the acrylic complex subsidiaries. The goal was to ensure ongoing operations and performance improvements without partner funding. The complex now covers its own operational, debt, and financing obligations.

The restructured loan was revalued at current cost using the effective interest rate method, in line with accounting standards and updated lender terms. The CEO said this will help improve future cash flows.

The loan's value will be reduced to its present value. Related non-cash costs will be reflected under financing expenses in the income statement over the 15-year loan period.

Tasnee reported a net profit of SAR 895.8 million in Q1 2025, compared to a net loss of SAR 72.1 million in the same period of 2024, according to Argaam’s data.