The company expects to close the year with 28.7 million tonnes of
production, according to CEO Abdolali Ali-Askari.
In a statement at the company’s annual general meeting for the fiscal
year ending June 2024, Ali-Askari highlighted PGPIC’s rise in the global
petrochemical rankings.
“Our company has moved up nine places to rank 18th among the world’s
top 100 petrochemical firms, largely due to the tireless efforts of our team,”
he said. Additionally, the company ranked fifth globally in profitability,
according to ICIS.
Ali-Askari noted that PGPIC maintained its leading position among
Iran’s top 100 companies, further solidifying its standing as the nation’s
premier petrochemical firm. In 2023, PGPIC produced 24.7 million tonnes, a 1.5
million tonne increase over the previous year.
Key contributors to the group's production surge include a
518,000-tonne increase at Bandar Imam Petrochemical, 400,000 tonnes at Pars
Petrochemical, 608,000 tonnes at Bid Boland Persian Gulf Gas Refinery, and
273,000 tonnes at Hoveyzeh Persian Gulf Gas Refinery.
Sales Growth and Financial Outlook
Ali-Askari also projected PGPIC’s total sales to reach 709 trillion
rials ($16.6 billion) by the end of 2024. This follows a 22% rise in sales in
2023, totaling 509 trillion rials, up from 418 trillion rials in 2022.
The group’s gross profit for the year ending June 2023 hit 680
trillion rials, and Ali-Askari forecast this figure to increase to 770 trillion
rials by the end of the current fiscal year. Meanwhile, net profit rose to
1,240 trillion rials, reflecting PGPIC’s continued growth, despite market
volatility. The company’s shareholders have seen a 107% return over the past
three years.
Ali-Askari added that the company has significantly expanded its
capital base, raising it from 28.7 trillion rials in 2021 to 75 trillion rials
in 2023, with plans to increase this further to 100 trillion rials.
Major Projects and Strategic Initiatives
PGPIC has completed several high-profile projects, including phase one
of the Hoveyzeh Persian Gulf megaproject, the Gachsaran Olefin Petrochemical
project, and the reconstruction of the Bouali Sina Paraxylene unit. The company
has 32 development projects in progress, with 17 key initiatives slated to add
24 million tonnes of annual production capacity at an estimated cost of $10
billion.
Among these are the second phase of Hengam Petrochemical, Gachsaran
Polymer, and the expansion of the Hoveyzeh Persian Gulf Refinery, all aimed at
enhancing the company’s upstream and downstream capabilities.
Flare Shutdown Plan and Future Gas Projects
Ali-Askari stressed PGPIC’s commitment to reducing gas flaring, with
plans to shut down 12 flares in the near future and 59 flares by the end of
2025, as part of the company’s broader sustainability efforts.
He also announced plans to develop the Marun Khami and Ahvaz Khami gas
fields to ensure a stable feedstock supply for PGPIC's operations. The Marun
Khami field, in particular, holds over 3 trillion cubic feet of gas reserves.
Looking ahead, Ali-Askari revealed plans to convert methanol into
gasoline to address Iran’s fuel shortages and create added value from methanol
production. In addition, PGPIC is in talks to develop new oil and gas fields
and aims to enhance its upstream capabilities by renovating wellhead processing
facilities to boost production.
Supporting Domestic Innovation
PGPIC has signed 410 agreements with 332 domestic technology and
knowledge-based companies over the past two years, amounting to 180 trillion
rials in investments, underscoring its commitment to supporting local content
and technological advancement within the petrochemical sector.