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Fanaavar Petchem Products Sales Value Rises by 23%

Fanaavar Petchem Products Sales Value Rises by 23%
(Sunday, July 14, 2024) 14:28

TEHRAN (NIPNA) -- Fanaavar Petrochemical Company has reported a 23% increase in the value of its product sales in 2023 compared to the previous year, according to CEO Hossein Rafighdoost.

The company attributes this growth to the expansion of target markets and diversification of sales mechanisms aimed at maximizing value for both the company and its buyers.

In the company’s annual general meeting, Rafighdoost highlighted the strategic pillars of Fanaavar Petrochemical, which include efficient production, stable sales, downstream industry development, knowledge production, and targeted investments. Over the past five years, the company’s capital has grown from IRR 10 million to IRR 30 trillion, marking an increase of over 30,000%.

Fanaavar Petrochemical’s investment portfolio includes Damavand Energy Assaluyeh, Kharq Petrochemical, Bank Mellat, Khorasan Petrochemical, Ghadir Petrochemical, Fanaavar Petro-Olefins, Novin Petrochemical, Farabi Petrochemical, and Marjan Petrochemical. These investments have brought the current value of its investment portfolio to over IRR 131 trillion, positioning the company towards becoming an investment holding.

Rafighdoost noted the company’s significant role in supplying feedstock to several major petrochemical complexes, including Bandar Imam, Shahid Tondgouyan, Shimi Baft, Nakhl Asmari, Karoun, and Razi Petrochemical, underscoring its strategic importance in the stable supply and production of petrochemical complexes in the special economic zone.

Despite challenges such as gas supply cuts in winter and extensive maintenance, Fanaavar Petrochemical produced approximately 1.15 million tons of products in 2023, reflecting a 9% increase from the previous year. Noteworthy production records were achieved, including 82,984 tons of acetic acid and 59,814 tons of carbon monoxide in the first half of the previous year, and a new record of 14,893 tons of acetic acid produced in June.

The company also reported an increase in methanol utilization from 84% in 2022 to 90% in 2023. Energy management initiatives have led to savings of over IRR 7.7 trillion in 2023, and cumulative savings of over IRR 16.7 trillion over the past four years.

Fanaavar Petrochemical’s 2023 strategy includes significant projects aimed at energy efficiency and environmental sustainability, such as CO2 separation and recovery, hydrogen-fired boiler projects, fuel optimization, and downstream development of acetic acid and vinyl acetate monomer (VAM).

The localization of parts and catalysts has resulted in foreign exchange savings of EUR 16.53 million from 2017 to 2023, with 122 parts localized in 2023 alone. The company sold approximately one million tons of products in 2023, with 60% exported to global markets, achieving sales worth over IRR 101 trillion, marking a 23% increase from the previous year.

Looking ahead, the company plans to further develop target markets and diversify sales mechanisms to maximize value for the company and its buyers. In addition to China and India, acetic acid will be exported to Azerbaijan, Iraq, Uzbekistan, Turkey, and Syria in 2023.

Operational revenue reached over IRR 101 trillion in 2023, up from IRR 82 trillion in 2022, with a gross profit of over IRR 23 trillion and a net profit of IRR 2.663 trillion. In the first three months of 2024, the company achieved operational revenue of IRR 28 trillion and a net profit of IRR 8.556 trillion, indicating a significant performance boost and promising substantial profit growth for 2024.

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